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BOJ's Shirakawa: Global economic uncertainty remains high

Published on Oct 22, 2012 9:22 AM

TOKYO (REUTERS) - Bank of Japan Governor Masaaki Shirakawa said on Monday the central bank must be vigilant about the effect of currency moves on the economy, warning that global economic uncertainty remains high.

"Overseas economies have moved somewhat deeper into a deceleration phase. Investors' risk aversion, driven by Europe's debt problems, has eased somewhat but we must carefully watch market developments," he said in a speech at a quarterly meeting of the central bank's regional branch managers.

The BOJ has been under political pressure to beat deflation.

It will likely cut its growth forecasts and may consider easing monetary policy further on Oct 30, say sources familiar with its thinking, as weakness in the economy heightens the chance Japan will miss the bank's 1 per cent inflation target for several more years.

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