KITA-KYUSHU, Japan, March 24 Bank of Japan
Deputy Governor Kikuo Iwata said on Monday the central bank's
current quantitative easing policy already takes into account
any possible short-term economic impact after an increase in the
sales tax rate in April.
"The biggest worry now is that economic growth will slump in
the second quarter, after accelerating in the first quarter due
to a rush in spending" ahead of the sales tax hike to 8 percent
from 5 percent in April, Iwata told a seminar in the southern
Japanese city of Kita-Kyushu.
"The BOJ, when it deployed the current (ultra-easy) monetary
policy, took into account whether (the stimulus) was enough for
the economy to recover after the slump," he said, dispelling
market speculation the central bank will ease further soon to
cushion the pain from the sales tax hike.
(Reporting by Leika Kihara; Editing by Dominic Lau)