BOJ Shirakawa: Inflexible FX may delay adjustment

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TOKYO, Nov 4 (BestGrowthStock) – Bank of Japan Governor Masaaki
Shirakawa said on Thursday that a lack of currency flexibility in
emerging nations may delay necessary adjustments in global
imbalances.

Shirakawa, who spoke at a seminar before attending a BOJ
policy meeting in the afternoon, did not comment on the outlook
for monetary policy. He also declined to comment on market moves
after the U.S. Federal Reserve’s debt-buying plan announced
overnight.

On Japan’s economy, Shirakawa said: “Japan’s economy appears
to be heading toward a moderate recovery. But improvements are
weakening due to slowing growth in exports and output.”

That view is line with the BOJ’s current economic assessment
and signals the central bank’s readiness to keep monetary
conditions easy to support the country’s fragile recovery.

The BOJ kicks off a two-day rate review on Thursday, a day
after the U.S. Federal Reserve’s decision to buy $600 billion
more in government bonds to boost the anaemic U.S. economy.

The Japanese central bank pushed forward its meeting from
mid-November to speed up the launch of its 5-trillion-yen ($62
billion) asset buying scheme.

The BOJ is likely to hold off on easing policy further as the
Fed’s expansion of its Treasury-buying scheme fell within market
expectations and did not trigger a sharp spike in the yen.
(Reporting by Leika Kihara, Rie Ishiguro; Editing by Edmund
Klamann)

BOJ Shirakawa: Inflexible FX may delay adjustment