TOKYO Oct 9 Bank of Japan Governor Masaaki
Shirakawa said on Tuesday attempts to maintain high growth
beyond a country's potential could cause various imbalances.
"The most important task for policy-makers is to achieve a
smooth transition from high growth to stable growth," Shirakawa
said in a speech to participants of a tour the central bank
organised for delegates visiting Tokyo for the International
Monetary Fund meetings.
In a two-day policy review that ended last Friday, the BOJ
resisted political pressure for action and kept monetary policy
steady, but left the door open to more monetary easing later
this month by warning of looming risks to the outlook for the
world's third-largest economy.
Shirakawa said at a news conference after the meeting that
the central bank will not link the timing of further monetary
easing automatically to its price outlook, signalling that
falling short of its 1 percent inflation target would not
guarantee immediate policy action.
The International Monetary Fund said on Tuesday that the
BOJ's monetary easing last month should support economic growth
and help end deflation, but more easing may be needed to hit the
bank's 1 percent inflation target.