The Bank of Japan stands ready to expand monetary stimulus further if necessary to safeguard its inflation mandate, two top policymakers said on Thursday, warning that the rout in emerging markets was already affecting Japanese assets.
Deputy Governor Kikuo Iwata dismissed the chance of an immediate expansion of monetary stimulus, stressing that solid U.S. growth will underpin global demand and keep the world's third-largest economy on track for a moderate recovery.
"I am not too worried about the U.S. economy and therefore in terms of Japan's monetary policy I think we can stick to our existing policy," he told a news conference after meeting with business leaders in Miyazaki, southern Japan
But the former academic, echoing concerns expressed by Governor Haruhiko Kuroda that lackluster growth in emerging Asia is weighing on exports, stressed the BOJ's readiness to act should external risks undermine its inflation target.
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