Bank of Japan ready to expand monetary stimulus

[TOKYO] The Bank of Japan (BOJ) stands ready to expand monetary stimulus further to safeguard its inflation mandate, two top policymakers said yesterday, warning that the rout in emerging markets was already affecting Japanese assets.

Deputy governor Kikuo Iwata however dismissed the chance of an immediate expansion of monetary stimulus, stressing that solid US growth will underpin global demand and keep the world's third largest economy on track for a moderate recovery.

"I am not too worried about the US economy and therefore in terms of Japan's monetary policy I think we can stick to our existing policy," he told a news conference after a meeting with business leaders in Miyazaki, southern Japan.