TOKYO Jan 31 Bank of Japan Deputy Governor
Hirohide Yamaguchi said on Thursday the central bank is ready to
ease monetary policy further if necessary through increased
"The BOJ may pursue further monetary easing if deemed
necessary, while carefully scrutinizing economic and price
developments," Yamaguchi said in a speech to business executives
in Nagasaki, southern Japan.
The BOJ this month doubled its inflation target to 2 percent
and switched to an open-ended commitment to buying assets next
year, responding to intense pressure from new Prime Minister
Shinzo Abe for bolder efforts to beat deflation.
A career central banker, Yamaguchi is a key figure to watch
for signals on the future direction of monetary policy and the
markets consider him among those more eager to ease aggressively
when needed. His five-year term ends on March 19.