Bank of Japan Governor Haruhiko Kuroda in a speech at Keidanren, Japan's biggest business lobby on Monday, strongly defended the central bank's yield curve control policy. He said that the new policy framework had kept Japan's long-term interest rates from joining the uptrend in global yields and was helping the economy overcome stagnation.

Kuroda offered an upbeat view on the global economy, saying it was emerging from the doldrums as factory and trade activity picked up. He said the global economy seems to be entering a new phase and finally putting behind the negative legacy of the global financial crisis. He added that BOJ's new policy framework will help maximize the benefits of global tailwinds for Japan's economy.

Kuroda also shrugged off criticism regarding the bank's 2 percent inflation target as being too ambitious. He said that the BOJ has enough policy ammunition to defend against future shocks to the economy only by accelerating price growth to its target.

"By implementing this policy framework in an appropriate manner, the BOJ can take advantage of the recovery momentum of the global economy to produce an even greater driving force for Japan's economy," he said in a speech at Keidanren, Japan's biggest business lobby.

Kuroda's remarks support the growing sense of optimism amongst BOJ policymakers on the outlook for Japan's economy and stoke market expectations that the bank will hold off on expanding monetary stimulus in coming months.