BOJ may need to ease if market shock hits economy: Kiuchi

[KANAZAWA, Japan] The Bank of Japan may need to ease monetary policy if the British referendum on whether to leave the European Union triggers a market shock that deals a severe blow to the economy, board member Takahide Kiuchi said on Thursday.

But Mr Kiuchi said any additional easing steps won't have much positive impact on the economy because Japan's problem is its low potential growth rather than a lack of demand.

"I don't think the BOJ has technically reached the limits (of monetary easing). But it's hard to come up with steps with positive effects that outweigh the long-term demerits," he said in a news conference after meeting with business leaders in the western coastal city of Kanazawa.

REUTERS