Japan PM Abe and BoJ chief defend country's monetary policy

Japan's prime minister and central bank chief came out in defence of the policies pursued by the country's monetary authority.

Speaking to a parliamentary committee on Tuesday, PM Shinzo Abe said the Bank of Japan was playing a critical role in both stimulating inflation and the economy.

"I hope the Bank of Japan conducts monetary policy to achieve its 2 percent inflation target, as well as focus on stimulating the economy," Abe said.

Also on Tuesday, BoJ head Haruhiko Kuroda told the same committee that inflation expectations, together with long-term interest rates, would likely rise as the economy picked up pace.

"Long-term interest rates may rise if the economy improves and pushes up inflation to 2.0%," Kuroda chimed in.

Their remarks came amid increased criticism from lawmakers for Japan's repeated failure to create self-sustained inflation.

Precisely to try and achieve that goal, the BoJ shifted towards a strategy of controlling the shape of the interest rate yield curve in a bid to stoke economic activity.

As of 0918 GMT dollar/yen was losing 0.37% to 112.30.