BOJ Fukui says return of deflation spiral unlikely

TOKYO, Feb 2 (Reuters) - Bank of Japan Governor Toshihiko Fukui said on Friday the chances are low that the Japanese economy will fall into a deflationary spiral, saying the central bank would support a sustainable recovery with stable prices.

"The economy is taking a steady step forward" towards a sustained economic recovery with price stability, Fukui told a parliamentary budget committee.

The central bank kept the overnight call rate target unchanged at 0.25 percent at a policy board meeting last month. Weakness in personal consumption and prices was seen as a reason behind its decision to delay a rate hike.