BOJ Morimoto: Yen falls to help exports, corporate revenues

KOCHI, Japan Tue Feb 19, 2013 9:16pm EST

KOCHI, Japan Feb 20 (Reuters) - Bank of Japan board member Yoshihisa Morimoto said on Wednesday recent yen declines will likely underpin exports and corporate revenues, helping the economy resume a moderate recovery.

He added the central bank will continue with its powerful monetary easing steps such as massive government bond purchases.

"The BOJ will promote powerful monetary easing based on its commitment to keep interest rates virtually at zero and purchase financial assets for as long as necessary," Morimoto said in a speech to business leaders in Kochi, western Japan.

Morimoto, formerly an executive at a utility, is regarded as a neutral on monetary policy and has always voted with the majority since joining the board in 2010.

The BOJ doubled its inflation target to 2 percent in January and made an open-ended pledge to buy assets from next year, responding to relentless pressure from Prime Minister Shinzo Abe to take bolder action to beat deflation.

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