(For more stories on the Japanese economy click [ID:nECONJP])

* Weak demand means interest rates to stay low

* New government stimulus impact unlikely until next year

* BOJ already expecting prices to fall for three years (Adds analyst comment, details)

TOKYO, Nov 12 (Reuters) - Japanese wholesale deflation eased in the year to October, but compared with the previous month price falls gathered pace in a sign that corporate activity remains subdued in the face of sluggish domestic consumption.

Weakening demand means deflation will persist for a few years, prompting the Bank of Japan to promise to keep interest rates very low for the foreseeable future.

"I think we need to be more cautious about deflationary pressure," said Shuji Tonouchi, a senior fixed income strategist at Mitsubishi UFJ Securities.

"Materials costs are falling, but demand in Japan is also weak. There's not much the Bank of Japan will do as the BOJ is already forecasting three years of falling prices. As for the government, they're considering an extra budget to create more jobs, but the impact won't be seen until next year."

Wholesale prices, as measured by the corporate goods price index (CGPI), fell 6.7 percent in the year to October, easing from an 8.0 percent slide in the year to September and a record 8.5 percent fall in the preceding two months.