February 6, 2013 / 2:46 AM / 5 years ago

BOJ's Sato: want to seek ways to indirectly affect fx rates

MAEBASHI, Japan, Feb 6 (Reuters) - Bank of Japan board member Takehiro Sato said on Wednesday that he wants to continue focusing on a channel in which monetary policy can indirectly affect currency rates.

“Asset markets have been buoyant after a long period of inactivity as the yen’s overall appreciation is being corrected,” Sato said in a speech to business leaders in Maebashi, a city in eastern Japan’s Gumma prefecture.

“The recovery in asset prices could lead to an improvement in the output gap and help push up prices,” he said.

The BOJ doubled its inflation target to 2 percent and expanded monetary stimulus in January, under pressure from Prime Minister Shinzo Abe to take bolder action to beat deflation that has plagued Japan for most of the past decade.

Sato, a former economist, was among two of the nine board members who voted against the decision to aim for 2 percent inflation.

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