Japan on track to meet 2 percent price target

TOKYO (Reuters) - Bank of Japan Governor Haruhiko Kuroda said on Monday the country's economy is recovering moderately and making steady progress towards meeting the bank's 2 percent inflation target.

"Japan's economy is projected to grow at a pace above its potential," with a virtuous cycle of production, income and spending likely to continue, Kuroda said in a speech at a seminar.

Kuroda also said he did not have a clear answer yet on how to detect financial imbalances or what measures best revitalise corporate financing, stressing the need to share insights among Japanese and European policymakers.

(Reporting by Leika Kihara; Editing by Chang-Ran Kim)