TOKYO, Nov 25 (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.