BOJ's Nishimura: ready for bold steps if economy deviates

NIIGATA, Japan Tue Dec 4, 2012 9:14pm EST

NIIGATA, Japan Dec 5 (Reuters) - Bank of Japan Deputy Governor Kiyohiko Nishimura said on Wednesday the central bank is always ready to take appropriate and bold action when the economy deviates from its baseline scenario.

"The BOJ is determined to pursue its aggressive monetary easing, making full use of its new policy measures, to achieve its price stability goal for the time being," Nishimura told business leaders in Niigata, northwest Japan.

A former academic, Nishimura surprised markets by proposing that the central bank boost asset purchases in April last year. His proposal was not accepted by the board at that time. He has voted with the majority since then.

The BOJ set a 1 percent inflation target in February and has eased monetary policy four times so far this year to beat deflation and ease the pain on the export-reliant economy from a strong yen and weakening global demand.

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