2 Min Read
(Adds quotes, details)
By Leika Kihara
AKITA, Japan, June 19 (Reuters) - Bank of Japan board member Yoshihisa Morimoto said on Thursday that exports are likely to rebound as overseas growth picks up, but warned that there are both "upside and downside" risks to the projection.
Morimoto stuck to the central bank's upbeat view on the Japanese economy, saying it is likely to continue recovering moderately with the pain from a national sales tax hike in April on household spending seen receding around summer.
The former utility executive also said the BOJ's massive monetary stimulus was exerting its intended effect, and that the effect will heighten as inflation accelerates.
But he warned that there were "both downside and upside risks" to the BOJ's projection that exports will rebound, depending on how overseas economies perform.
"We must continue to scrutinise the outlook for emerging economies, as well as developments in Europe's debt problem and the U.S. economy," Morimoto said in a speech to business leaders in Akita, northeastern Japan.
The BOJ has stood pat on policy since launching an intense burst of stimulus last April, when it pledged to double base money via aggressive asset purchases to achieve its 2 percent inflation target in roughly two years. (Reporting by Leika Kihara; Editing by Chris Gallagher & Shri Navaratnam)