Japan finance minister wary about BOJ foreign bond buying

TOKYO Tue Oct 2, 2012 1:37am EDT

Japan's new Finance Minister Koriki Jojima attends a transfer of duties ceremony at the Finance Ministry in Tokyo October 2, 2012. Japan's new finance minister said on Monday the idea of the central bank buying foreign bonds needs to be considered carefully and there is no change in the government's readiness to take decisive action on excessive foreign exchange movements. REUTERS/Toru Hanai

Japan's new Finance Minister Koriki Jojima attends a transfer of duties ceremony at the Finance Ministry in Tokyo October 2, 2012. Japan's new finance minister said on Monday the idea of the central bank buying foreign bonds needs to be considered carefully and there is no change in the government's readiness to take decisive action on excessive foreign exchange movements.

Credit: Reuters/Toru Hanai

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TOKYO (Reuters) - Newly appointed Japanese Finance Minister Koriki Jojima sounded a cautious note on the idea of the Bank of Japan's buying foreign bonds as a method of future monetary easing.

"From the standpoint of the current BOJ Law, careful consideration would be needed," he told a news conference after a cabinet meeting on Tuesday.

Jojima's remark comes a day after newly appointed Economics Minister Seiji Maehara said that such purchases represent one option for easing, and that the yen's strength had gone too far.

The BOJ, which eased monetary policy last month, will hold its next policy-setting meeting this week.

(Reporting by Tetsushi Kajimoto; Editing by Chang-Ran Kim)

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