BOJ’s Kuroda says must watch FX impact on economy

TOKYO (Reuters) – Bank of Japan Governor Haruhiko Kuroda said on Friday the central bank must closely watch how financial and currency market moves could affect the country’s economy and prices.

“Japan’s economy is likely to recover as the impact of the coronavirus pandemic and supply constraints ease,” Kuroda said in a speech to an annual meeting of credit unions.

“Uncertainty over Japan’s economic outlook is extremely high,” he added, pointing to risks such as the fallout from the pandemic, the war in Ukraine and overseas economic developments.

(Reporting by Sakura Murakami and Leika Kihara; Editing by Jacqueline Wong)