BOJ official: inflation caused solely by weak yen could hurt economy

TOKYO, June 13 Wed Jun 12, 2013 11:08pm EDT

TOKYO, June 13 (Reuters) - A senior Bank of Japan official said on Thursday that price hikes caused solely by a weak yen could hurt economic recovery, stressing the need for inflation to accompany balanced growth.

"If price hikes are caused solely by a weak yen, that would be cost-push (inflation) and thus could negatively affect a steady economic recovery," BOJ Executive Director Masayoshi Amamiya said at a parliamentary committee session.

Amamiya also said he saw the economy showing signs of a positive shift towards a narrower a supply-demand gap following the bank's aggressive monetary easing.

The BOJ is proceeding with monetary easing while examining upside and downside risks to the economy, he said.

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