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By Leika Kihara
AKITA, Japan, June 19 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