BOJ's Shirakawa says to act flexibly on policy

(For more on the BOJ succession, click [ID:nT55777])

TOKYO, April 8 (Reuters) - Masaaki Shirakawa, the government's nominee for Bank of Japan governor, said on Tuesday the central bank would conduct monetary policy flexibly while watching risks to the economy.

The Japanese economy faces risks both at home and from abroad, but is expected to expand moderately after a slowdown, Shirakawa told a parliamentary hearing before the upper and lower houses vote on his nomination, likely on Wednesday.

Shirakawa won parliamentary backing as a deputy governor last month and has been serving as acting governor.

The government's third attempt to pick a governor is likely to be approved in parliament, with lawmakers from the main opposition Democratic Party expressing support.

The BOJ governor nominee needs approval from both the lower house and the opposition-controlled upper house of parliament to be appointed. (Reporting by Yoko Nishikawa and Hideyuki Sano)