Reuters reports that Bank of Japan Governor Haruhiko Kuroda said that Japan's economy will likely recover to levels before the coronavirus pandemic as early as March next year.

Kuroda also said a combination of expansionary fiscal and monetary policies have successfully stabilised Japan's economy, signalling that the BOJ has offered sufficient stimulus for now to cushion the economic blow from the health crisis.

"Both fiscal and monetary policies have been successful in preventing corporate failures and unemployment," Kuroda told.

"We expect, probably by the end of fiscal 2021 or early fiscal 2022, that Japan's economy would recover and come back to levels before the pandemic started," he said.

In its latest quarterly projections released last week, the BOJ expects the world's third-largest economy to expand 3.9% in the fiscal year beginning in April, followed by a 1.8% increase in fiscal 2022.