Showing the prospect at a quarterly meeting of BOJ branch managers at the central bank's head office in Tokyo, Kuroda thus reiterated his view that the country is on course to overcome deflation.

The Japanese economy is "turning toward a moderate expansion," he said. Aiming to boost consumer inflation to the targeted level, the BOJ will continue its quantitative and qualitative monetary easing featuring yield curve control "as long as it is necessary," Kuroda said.

According to recent government data, Japan's core consumer price index, excluding often-volatile fresh food prices, rose 0.4 percent year on year in May, up for the fifth straight month. The pace of growth was stronger than 0.1 percent in January, 0.2 percent in February and March, and 0.3 percent in April.

At the meeting, BOJ branch managers will report economic conditions in their respective regions. The BOJ will release a regional economic report later on Monday. (Jiji Press)