UPDATE 1-Japan's Omi says closely exchanging views with BOJ

(Adds comments, background)

TOKYO, May 9 (Reuters) - Japanese Finance Minister Koji Omi on Wednesday reiterated his hope that the Bank of Japan will guide monetary policy appropriately to ensure the nation keeps on track for steady economic growth with price stability.

While repeating that the BOJ holds jurisdiction over interest rate decisions, Omi said he would continue to closely exchange views with the central bank so that monetary policy is consistent with the government's economic policy.

"We are always striving to share our understanding on economic conditions with senior BOJ officials," Omi told a lower house financial committee.

"We have always expressed hope that the BOJ, through monetary policy, supports steady economic development with price stability," he added.

Omi said that communication between the government and the BOJ is going "very smoothly," adding that he believes the central bank understands well the government's economic goals.

The BOJ raised its key policy rate to 0.5 percent from 0.25 percent in February, judging that the economy would keep on track for steady growth with prices seen in an uptrend.

With price growth tame, the central bank has pledged to raise rates gradually, and many analysts expect the next rate hike to come in the July-September quarter at the earliest.

Japan is currently enjoying its longest period of expansion in the postwar era, albeit at a slower pace than previous booms, on the back of solid exports and robust capital spending.

But price growth has barely picked up. The core consumer price index, a key price gauge that excludes volatile fresh food prices, fell 0.3 percent in March after a 0.1 percent decline in February.