TOKYO (Reuters) - Bank of Japan’s deputy governor Masazumi Wakatabe said the central bank should not hesitate to ease policy further if there is risk of returning to deflation, the Nikkei business daily reported on Thursday.
“I still think there’s no limit to monetary policy,” Wakatabe told the Nikkei in an interview.
“It’s true monetary policy alone cannot contribute to defeating deflation. Abenomics’ thinking on flexible fiscal policy and growth strategy is still effective.”
(This version of the story was refiled to add missing word in headline)
Reporting by Tetsushi Kajimoto; Editing by Shri Navaratnam