*
BOJ chief: No immediate need to revise joint statement
with govt
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Says important to stoke virtuous cycle of higher wages,
prices
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Bond buying aimed at meeting 2% target, not to monetise debt
(Recasts, adds detail, background)
By Tetsushi Kajimoto
TOKYO, April 18 (Reuters) - Japan will stay the course
to reach the central bank's 2% inflation target by continuing
monetary easing even though it may take time, Governor Kazuo
Ueda said on Tuesday, signalling his stance to maintain loose
conditions.
Speaking at the lower house financial committee of
parliament, Ueda said he saw no immediate need to review a joint
statement issued with the government about a decade ago.
The joint statement, which is not legally binding,
stipulates the respective roles the government and the Bank of
Japan (BOJ) should each play to pull the country out of
deflation.
"We are going to approach meeting the 2% inflation target by
keeping to monetary easing, although it may take time," Ueda
said. "The joint statement is appropriate and I don't see any
immediate need to revise the target."
Ueda stressed the need for Japanese firms to boost
investment in human capital, saying that economic growth should
bear the fruits of higher wages and sustain inflation. He
praised government-led reforms allowing flexible way of working,
which he said has contributed to stronger economic growth.
In an earlier parliamentary session, Ueda, pressed for
his views on Japan's fiscal policy, defended the central bank's
debt purchases.
The BOJ is buying Japanese government bonds (JGBs) as part
of efforts to achieve its 2% inflation target, not to monetise
debt.
"The BOJ's JGB purchases are managed out of the need of
conducting monetary policy with the aim of achieving the 2%
price stability target," Ueda told the lower house financial
committee of parliament. "We have no intention of helping the
government acquire financial sources."
As part of its yield control policy and quantitative easing,
the central bank purchases a massive amount of JGBs as well as
risky assets such as exchange-traded funds and real estate
investment trusts.
In his first appearance in parliament since assuming office
on April 9, Ueda faced lawmakers' questions on fiscal issues, as
Japan scrambles to fund its plan to double defence outlays amid
growing security concerns about China and North Korea.
Some ruling party lawmakers are considering extending a
60-year redemption rule for government debt to 80 years in order
to create more fiscal space.
Speaking at the same session, Finance Minister Shunichi
Suzuki said the finance ministry was not specifically
considering reviewing the debt redemption rule for now.
(Reporting by Tetsushi Kajimoto; Editing by Sam Holmes and
Jacqueline Wong)
