MNI POLICY: BOJ New Board Member: Quick Action If Needed

     TOKYO (MNI) - The Bank of Japan will need to take action swiftly if needed

as it keeps a close eye on economy and virus spread, incoming board member,

Toyoaki Nakamura, said Wednesday.

     However, he doesn't see the need for the BOJ to take additional action at

present.

     "The BOJ must provide necessary liquidity in order to prevent firms from

facing (cash) problems," Nakamura, a former director of Hitachi, told reporters

after taking office earlier in the day.

     The economic climate remains severe as demand had disappeared due to the

spread of the coronavirus, he said.

     It is unlikely the economy will return to levels seen 2019 immediately but

overall the economy is expected to rise on a q/q basis.

     --INFLATION TARGET

     Nakamura said it was appropriate for the BOJ to achieve its 2% price

target, saying that an inflation rate around 2% is needed for firms to implement

business. However, he said it is difficult for the BOJ  to take policy action to

achieve its target in addition to supporting the economy through the Covid-19

crisis.

     Nakamura said that the BOJ's huge purchases of Japanese government bonds

aren't monetization of debt.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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