HIGHLIGHTS 2 -Key quotes from BOJ chief Kuroda's news conference
TOKYO Oct 31 (Reuters) - Three Bank of Japan board members dissented against the central bank's latest semi-annual report on the economy, objecting to the bank's time frame for achieving its 2 percent inflation goal or citing stronger downside risks to the economy, BOJ Governor Haruhiko Kuroda said on Thursday.
Among the board's nine members, Takahide Kiuchi and Takehiro Sato disapproved of the report's forecast that Japan will see 2 percent inflation around the end of fiscal year 2014 through fiscal 2015.
Another board member, Sayuri Shirai, proposed emphasising more downside risks to the economy.
Following are key quotes from Kuroda's news conference after the policy meeting:
"Board members Sato and Kiuchi had previously voted against the view that a 2 percent price stability goal could be met towards the latter half of the forecast periods, and they voted against it this time as well for the same reason.
"Board member Shirai argued that the outlook report on the economy and prices should be described in a way that is easier to understand. She proposed modifying the description focusing more on downside risks."
"As we have been steadily implementing the quantitative and qualitative easing, the economy is expected to grow above its potential and steadily follow the path towards the 2 percent price stability goal even though the sales tax hikes next April will cause some fluctuations due to a last-minute buying rush.
"If risks at home and overseas force changes in our outlook and the path towards the 2 percent price stability goal, we will make necessary adjustments."
"There's no concern about liquidity in underlying global financial markets. Japan's financial conditions are accommodative and the country's financial institutions are not facing problems with foreign-currency funding.
"Swap arrangements among the six central banks have contributed to stability in global financial markets. We decided to make them permanent to avoid uncertainty as they were due to expire next February.
"We have no plan to extend the swap arrangements beyond the six central banks."
U.S., GLOBAL ECONOMY
"As the fiscal negotiations ran into difficulties, the U.S. government faced partial shutdown while it avoided defaulting on its debt. The impact (from the U.S. fiscal standoff) has been limited on the U.S. economy ... The U.S. economy is likely to pick up its tempo of recovery.
"We will need to bear in mind the risk of the U.S. economic growth undershooting expectations due to fiscal problems. I'd like to pay close attention to the U.S. economic outlook.
"There's no change in our view that the global economic growth will be led relatively by U.S. and other advanced economies.
"As the global economy recovers gradually, Japan's overall trade will remain on a gradual recovery path."
"I expect wages to rise ahead because companies voice some positive remarks about wage hikes as revenues improve, while the jobs market is tightening and talks are taking place between the government, labour unions and business leaders."