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Nov 21 (Reuters) - The Bank of Japan is expected to keep interest rates unchanged at a two-day policy board meeting that ends on Friday after its first rate cut in seven years last month.
The BOJ cut its key policy rate to 0.30 percent from 0.50 percent last month, joining a global wave of rate cuts as the world economy grappled with a deepening financial crisis.
Following are recent key comments by BOJ officials and policymakers on the economy and the credit crisis:
FINANCE MINISTER SHOICHI NAKAGAWA, Nov 21, news conference:
"Stock prices are falling globally now and I think it is primarily due to the situation at major U.S. corporations."
"I hope to consider promptly what Japan can do (to prop up the stock and market economy) and implement measures as soon as possible. We will cooperate with other relevant ministries and the Bank of Japan on those efforts."
BOJ DEPUTY GOVERNOR KIYOHIKO NISHIMURA, Nov 17, seminar:
"Due to strong awareness of counterparty risks in the dollar markets, the function of these markets is declining and Japan's financial market is also becoming unstable."
PRIME MINISTER TARO ASO, Nov 15, news conference on the sidelines of a G20 meeting in Washington:
"It is the worst crisis in 100 years but the crisis could be a chance at the same time. History tells us that when we overcome crisis, a new order is created. We should not be just flustered by the crisis. The crisis in 1929 led to the outcome (that it did) because we were flustered. But it is different this time because we have a framework for cooperation."
BOJ POLICY BOARD MEMBER SEIJI NAKAMURA, Nov 13, speech:
"The global financial crisis could slow down the world economy. The Japanese economy could be on the brink of a drawn-out adjustment phase ...
"At the same time, Japanese banks' lending attitude is turning cautious due to concern over the economy and the earnings outlook, suggesting a change in easy monetary conditions ...
"As the latest turmoil in the global financial markets is increasing pressure on the real economy, the risk of a further slowdown in the world economy is rising and it's getting hard to predict when it will stop decelerating and accelerate again."
BOJ GOVERNOR MASAAKI SHIRAKAKAWA, Nov 5, speech:
The governor said it was inappropriate for the central bank to focus on asset price moves in guiding monetary policy. He also reiterated that the BOJ should pay attention to downside economic risks in guiding monetary policy for the time being.
BOJ SHIRAKAWA, Oct 31, news conference after the BOJ decided to cut rates:
"Looking at the real economy, there have been indicators that pointed to a clear deterioration in capital expenditure, exports and production.
"Interest rates had been already low. But to deal with changing conditions and to maintain easy monetary conditions, we judged that a rate cut was appropriate."
"We also considered that stability of financial markets is important. If we look at the economy alone, a wider cut would have been desirable. But if we cut rates too much, that could have a negative impact on the functioning of money markets.
BOJ NISHIMURA, Oct 29, parliament:
"There is a risk that global market and economic conditions could worsen further and affect Japan's economy. Downside risks for the economy are heightening.
"When financial market tension is high as it is now, the most important contribution a central bank can make is to ensure stability in markets through liquidity provision."
ECONOMICS MINISTER KAORU YOSANO, Oct 28, news conference:
"It would be an important proof of international cooperation if Japan lowers rates when other central banks cut them."
BOJ DEPUTY GOVERNOR HIROHIDE YAMAGUCHI, Oct 27, news conference:
"Japan's interest rates, at 0.5 percent, are very low in light of Japan's economic growth and inflation ... Our basic stance is to act flexibly by looking at both upside and downside risks, in view of the outlook for the economy and prices.
"But global market developments are very tense, so we hope to continue our efforts to ensure market stability through massive liquidity provision."
FINANCE MINISTER NAKAGAWA, Oct 27, news conference:
(Asked whether Japan may intervene to stem yen rises)
"We must take steps if necessary as a matter of course, and will decide what those steps would be by watching the market moves and respond to them swiftly. But we haven't yet decided what to do next." (Reporting by Tokyo Economic Policy Desk)