UPDATE 1-BOJ Shirakawa sees no need to buy more bonds now

(For more stories on the Japanese economy, click [ID:nECONJP])

* Shirakawa sees BOJ’s current bond buy amount as enough

* Says watching forex moves impact on economy

* Adds won’t link monetary policy directly to forex moves
(Adds details)

By Leika Kihara

TOKYO, Jan 29 (BestGrowthStock) – Bank of Japan Governor Masaaki
Shirakawa said the central bank’s current amount of public debt
buying was appropriate, shrugging off the view that it needs to
buy more bonds to support the economy.

Analysts say the government may pressure the BOJ to buy more
government bonds than the current 21.6 trillion yen ($240
billion) per year if bond yields start to rise on market concern
over Japan’s huge public debt.

The BOJ has been hesitant to increase its bond buying
further, arguing that doing so would give markets the impression
the bank is underwriting public debt.

“Trying to influence interest rates or monetising public debt
would go against the central bank’s basic principle, which is to
achieve sustainable economic growth with price stability,”
Shirakawa told a forum on Friday.

“In supplying ample funds to the market, I think the bank’s
current bond purchasing amount is appropriate,” Shirakawa said.

Shirakawa also said stability in currency market was
important as exchange-rate moves are among factors that have a
significant impact on the economy.

“It’s always important to consider the impact currency moves
have on the economy. Having said that, we shouldn’t link monetary
policy directly to currency moves,” he said.

Shirakawa offered few clues on the outlook for monetary
policy, repeating that he won’t rule out any policy options and
that the central bank was ready to act “swiftly and decisively”
if financial markets destabilise.

UPDATE 1-BOJ Shirakawa sees no need to buy more bonds now