* BOJ can cut rates beyond minus 0.1 pct if needed-Kuroda
* Adds can devise new tools if existing ones don't work
* Kuroda says no limits to monetary policy means
* China has room to top up stimulus, can achieve stable
(Adds quotes, details)
By Leika Kihara
TOKYO, Feb 3 Bank of Japan Governor Haruhiko
Kuroda said the central bank has ample room to expand stimulus
further and is prepared to cut interest rates deeper into
negative territory, signalling a readiness to act again to hit
his ambitious inflation target.
Even after deploying what he described as "the most powerful
monetary policy framework in the history of modern central
banking," Kuroda said he remained open to devising new means to
revive the economy if existing tools did not work.
"If we judge that existing measures in the toolkit are not
enough to achieve (our) goal, what we have to do is to devise
new tools," Kuroda said in a speech at a seminar on Wednesday.
"I am convinced that there is no limit to measures for
monetary easing," he said.
The BOJ chief said although Japan's economy was recovering
moderately, it was taking longer than expected to achieve his 2
percent inflation target due to slumping energy costs.
While offering few clues on the trigger for further monetary
easing, Kuroda said the recent global markets rout and slowing
emerging economies could hurt Japanese business sentiment and
discourage firms from boosting wages.
"What's important is how (such external risks) could affect
confidence," he said.
Kuroda remained sanguine on China's outlook, saying the
world's second-largest economy was likely to sustain stable
growth as policymakers have plenty of room to deploy additional
fiscal and monetary stimulus measures.
The BOJ unexpectedly cut a benchmark interest rate below
zero on Friday, stunning investors with another bold move to
stimulate the economy as volatile markets and slowing global
growth threaten its efforts to overcome deflation.
The central bank will charge a 0.1 percent interest on some
of the excess reserves financial institutions park with the BOJ,
while maintaining its existing asset-buying programme - dubbed
"quantitative and qualitative easing" (QQE).
Kuroda countered criticism that the BOJ was running out of
ammunition to accelerate inflation - which has ground to a halt
due to slumping oil costs - to 2 percent, saying negative rates
won't hamper the bank's efforts to gobble up government bonds.
"If judged necessary, it is possible to further cut the
interest rate from the current level of minus 0.1 percent," he
(Reporting by Leika Kihara; Editing by Chris Gallagher & Shri