BOJ Kuroda: prolonged U.S. fiscal standoff could destabilise markets

Reuters

TOKYO, Oct 4 (Reuters) - Bank of Japan Governor HaruhikoKuroda warned on Friday that the U.S. fiscal standoff coulddestabilise global financial markets if it drags on.

Asked whether the BOJ will ease further if the U.S. debtstalemate severely hits the global economy, Kuroda said: "Wewill make necessary policy adjustments, depending on upside anddownside risks, but for now we see Japan's economy making steadyprogress towards achieving the BOJ's 2 percent price goal evenwhen taking into account various risk factors."

The BOJ maintained its massive stimulus on Friday andoffered a slightly more upbeat view on capital expenditure thanlast month, encouraged by growing signs that the benefits of itsstimulus policy are broadening.

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