FACTBOX-Recent comments by Japan officials on economy, policy

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

TOKYO, Oct 7 (Reuters) - The Bank of Japan is widely expected to leave its key policy rate unchanged at 0.50 percent on Tuesday as it assesses the depth of the global credit crunch and its impact on the world economy.

Mounting tensions in the global credit market and worries over a recession have recently sparked expectations of a rate cut in the United States and Europe, triggering speculation that the BOJ may follow suit. [ID:nCRISIS]

But many economists see the chances of a BOJ rate cut as slim at least for now, with monetary conditions already accommodative and core consumer inflation at a decade high.

Following are recent key comments by BOJ officials and policymakers on the economy and the credit crisis:

ECONOMICS MINISTER KAORU YOSANO, Oct. 3 news conference:

"Solely lowering the interest rate target, in reality, would not have much impact."

BOJ GOVERNOR MASAAKI SHIRAKAWA, Sept. 29 news conference:

"Credit risk has risen and banks have become extremely cautious about lending for the longer term and we think that dollar liquidity has almost dried up."

BOJ DEPUTY GOVERNOR KIYOHIKO NISHIMURA, Sept. 29 news conference:

"We will take into account not just the situation in Japan but global developments in examining our options."

BOJ BOARD MEMBER TADAO NODA, Sept. 25, on visit to Kushiro, northern Japan:

"What the losses among financial institutions ... will add up to eventually is still shrouded in fog. The U.S. housing market is still in adjustment and credit tightness is now spreading from residential mortgages to commercial mortgages and consumer loans.

"As Japan learned in the 1990s, financial institutions whose capital has been damaged have no choice but to be cautious about corporate lending. Finance serves as the lifeblood of the economy, so if there is clogging that is bound to have an impact on the real economy ...

"I just can't say 'yes' nor 'no' to your question about whether a rate cut is in sight."

BOJ SHIRAKAWA, Sept. 18, after announcing the introduction of dollar-supplying operations to calm markets:

"As Japanese banks have been cautious about foreign currency funding given recent market developments, I don't have any particular concern about Japanese financial institutions' foreign currency funding. Today's step by the BOJ is aimed at further promoting smooth yen money market operations, maintaining a smooth mechanism and seeking market stability ...

"Tension in global financial markets has increased rapidly and there has been unexpectedly elevated pressure in short-term market funding. To address this obvious deterioration of the financial market environment, central banks judged that immediate coordinated action was appropriate."

BOJ SHIRAKAWA, Sept. 17, news conference after rate decision:

Asked what the BOJ discussed with other central banks to ensure market stability: "Central banks are closely exchanging views but due to the nature of the topic, I can't reveal what was discussed. What I can say is that central banks closely exchange views based on a broadly shared goal of achieving price and financial system stability.

"I do not know what would be discussed at the Group of Seven finance leaders' meeting in October. But given the current global economic and financial conditions, I'm sure (ensuring financial market stability) will be among the topics to be discussed." (Reporting by Tokyo Policy Desk; Editing by Rodney Joyce)