More Japan deflation cannot be ruled out says BOJ governor

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Monday June 4, 12:24 am Eastern Time

More Japan deflation cannot be ruled out-Yamaguchi

SINGAPORE, June 4 (Reuters) - Bank of Japan (BOJ) Senior Vice Governor Yutaka Yamaguchi said on Monday a worsening of deflation in Japan could not be discounted.

``Some worsening of deflation due to weakening demand cannot be ruled out going forward,'' he said, adding that this was why the central bank had decided to ease monetary policy.

Yamaguchi was speaking to delegates at the International Monetary Conference in Singapore.

Credit spreads had narrowed following the BOJ's easing, indicating a greater appetite for risk, but there was still little sign that banks were willing to expand lending, he said.

-- (M@rket.trends), June 04, 2001


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