NAGASAKI, Japan Jan 31 Bank of Japan Deputy
Governor Hirohide Yamaguchi said on Thursday that the central
bank's monetary easing is never taken as a measure to directly
weaken the yen.
"I will not rule out the chance of BOJ easing indirectly
affecting currency moves and weakening the yen, but we do not
take policy steps aimed at directly affecting exchange rates,"
Yamaguchi told a news conference after meeting with 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 deflation.
A career central banker, Yamaguchi is a key figure to watch
for signals on the future direction of monetary policy. Markets
count him among board members more eager to ease aggressively
when needed to support the economy. His five-year term as one of
the BOJ's two deputy governors ends on March 19.