The BOJ meeting is Jan 29
Bloomberg spoke with Bank of Japan Governor Haruhiko Kuroda at Davos and he brushed aside worries about recent market turmoil.
"At this stage, we don't think the current market situation has been affecting corporate behavior unduly," he said. "But, as I said, the market is the market, and markets could affect the real economy -- so we carefully watch."
On the economy, he sounded a positive note.
"At this stage, a virtuous cycle of income to spending by the corporate sector as well as the household sector is maintained -- fairly robust," Kuroda said. "We are not so much concerned about the real economy."
Unnamed officials cited by Bloomberg suggested the BOJ may once again delay the timeframe for reaching the inflation goal. They have been disappointed by annual wage talks as labour unions ask for smaller raises.
"If necessary to achieve the 2 percent inflation target, particularly if the underlying inflation trend is seriously affected, then we can expand or further strengthen QQE in many ways," Kuroda said, referring to his quantitative and qualitative easing program. "There are many ways to further strengthen and expand QQE even more creatively."
On China, Kuroda also said he was "relatively optimistic."
