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Some in Bank of Japan called for monetary, fiscal policy mix: Oct meeting minutes

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A few Bank of Japan board members said the central bank must work carefully with the government in dealing with the next economic downturn, minutes of the BOJ's October rate review showed on Tuesday.

[TOKYO] A few Bank of Japan board members said the central bank must work carefully with the government in dealing with the next economic downturn, minutes of the BOJ's October rate review showed on Tuesday.

"The BOJ should prepare for the next economic downturn as among risk scenarios. In doing so, it's important not only to take monetary policy action but enhance cooperation with the government" such as through fiscal policy, the minutes quoted a few board members as saying.

At the Oct 30-31 rate review, the BOJ kept policy steady but gave the strongest signal to date that it may cut interest rates in the near future, underscoring its concern that overseas risks could derail a fragile economic recovery.

REUTERS