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

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

Asked whether the BOJ will ease further if the U.S. debt stalemate severely hits the global economy, Kuroda said: "We will make necessary policy adjustments, depending on upside and downside risks, but for now we see Japan's economy making steady progress towards achieving the BOJ's 2 percent price goal even when taking into account various risk factors."

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