UPDATE 1-Japan govt,BOJ to hold monthly talks from Nov-source

(For more stories on the Japanese economy, click [ID:nECONJP])

* BOJ, govt plan meetings to share views on economy -source

* Prime Minister Hatoyama may occasionally join

* Talks won't cover details of monetary policy - Nikkei (Recasts with source)

TOKYO, Oct 29 (Reuters) - Japan's government and central bank are looking at holding monthly talks to discuss the economy, with the first meeting likely to be held in early November, a source with knowledge of the matter said.

The new government has pressed the Bank of Japan to continue its corporate funding support, which the central bank says is no longer necessary because credit markets have largely recovered from the shock of the global financial crisis. The central bank holds a policy board meeting on Friday. [ID:T339954]

In the regular talks, the government will not go into details about monetary policy to respect the BOJ's independence, the Nikkei business daily reported without citing sources.

BOJ Governor Masaaki Shirakawa, Finance Minister Hirohisa Fujii and National Strategy Minister Naoto Kan will come together in the talks to share their views on the economy and financial markets, the source said.

They aim to hold their first such meeting in November, before the central bank's policy meeting on Nov. 19-20, the source said.

Prime Minister Yukio Hatoyama may sometimes also take part in the meeting, the source told Reuters.

The meeting will be attended by three officials each from the Finance Ministry and the Cabinet Office as well as the BOJ governor and the bank's two deputy governors, the source said.

Senior officials of the BOJ, the Ministry of Finance and the Cabinet Office hope to reach an agreement this week.

Keisuke Tsumura, parliamentary secretary at the Cabinet Office, said earlier this month that the government was examining the possibility of regular talks with the BOJ. [ID:nT242200]

At present, the only regular government meeting the BOJ governor attends is a monthly gathering of economic ministers, held to approve the government's monthly economic report.

The BOJ is leaning towards announcing, at a rate review on Friday, an end to its measures aimed at supporting corporate finance when they expire in December. [ID:nT271532]

But it has come under pressure from some cabinet ministers who worry that a quick exit from emergency steps to support corporate funding would hurt the fragile economy, just now emerging from its deepest recession in 60 years. (Reporting by Leika Kihara, Hideyuki Sano and Yuko Yoshikawa; Editing by Hugh Lawson)