Yamaguchi Says BoJ Should Pay Special Attention On Yen

Bank of Japan Deputy Governor Hirohide Yamaguchi said the central bank should pay special attention to the impact of yen's appreciation on the economy.

"In the current phase of high uncertainty about the outlook for overseas economies, special attention should be paid to the possibility that the yen's appreciation will have a negative impact on Japan's economy through a decline in exports and corporate profits as well as a worsening of business sentiment," he said in speech at the Japan Chamber of Commerce and Industry on Thursday.

Though the strong yen will have some positive impact on domestic demand-oriented firms, it might be difficult even for them to take positive action utilizing the merits in the current situation, in which they struggle to visualize future growth, he added.

According to him, uncertainty about the future of the economy will put a brake on firms' current economic activity.

Therefore, the bank will "steadily support firms' activities through taking appropriate policy action if necessary in the powerful monetary easing stance."

Earlier in the day, BoJ Governor Masaaki Shirakawa reiterated that the central bank is "fully committed" to pursuing powerful monetary easing to help the economy fight deflationary pressures and return to sustainable growth path.