Bank of Japan Deputy Gov. Amamiya
- global economic slowdown affecting Japan's exports but Capex, domestic demand firm
- overseas, market developments may affect Japan's corporate, business sentiment
- BOJ will look at various risks. Take appropriate policy action without any preset idea
- like other major central banks, BOJ could take policy action to preempt risks from materializing
- Rate cuts, increase in asset buying and acceleration of base money expansion among options of BOJ were to ease
- BOJ could combine these steps, or modify them if it were to ease
- If US economy on solid footing, that will have positive effect on global economy
- Feds rate cut a preemptive measure against risk of slowed down in economy, inflation.
- BOJ must closely watch how overseas risks affect Japan's economy, prices
- if overseas uncertainty heightens, that may make firms cautious about spending so need to be vigilant
- no major change to BOJs view overseas economy to head toward a pickup
- Japan's economy sustaining mechanism under which positive output gap gradually pushes up wages, inflation
- Japan's economy sustaining momentum for hitting BOJ's price goal but must be vigilant to risk this momentum may be lost
- downside risks from overseas remain significant
