BOJ chief: Impact of price rise 'not very large'

The head of the Bank of Japan says rising raw material prices have not had a very large impact on the economy.

BOJ Governor Kuroda Haruhiko held a news conference on Monday after attending a meeting in Nagoya, central Japan, with local business leaders.

Kuroda referred to rising prices of crude oil and other raw materials. He said prices of gasoline and some food products are rising but the impact on the economy has not been very large. He added that the BOJ will closely watch economic and price trends.

Regarding the weaker yen on the foreign exchange market, Kuroda argued its positive effects exceed negative impacts.

He said the yen's depreciation pushes up the value of exports and revenues at Japanese firms' overseas subsidiaries.