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INTERVIEW-New Japan govt won't meddle in BOJ policy -lawmaker

Published 09/01/2009, 11:10 PM
Updated 09/01/2009, 11:15 PM

By Tetsushi Kajimoto and Sumio Ito

TOKYO, Sept 2 (Reuters) - The Democratic Party of Japan will not meddle in the Bank of Japan's policy and market operations, a key party lawmaker said, shrugging off speculation that it may pressure the central bank to print money to buy government debt.

The DPJ won a sweeping victory in a lower house election on Sunday, ousting the conservative Liberal Democratic Party for only the second time in more than 50 years and breaking a deadlock in parliament, where the Democrats and small allies control the upper house.

"The incoming government and the central bank got off to a smooth start," Kohei Otsuka told Reuters in an interview, one day after BOJ Governor Masaaki Shirakawa met with senior DPJ lawmakers.

"We won't meddle in the BOJ's policy and market operations including government bond buying," he said.

Otsuka is a former BOJ official and a deputy finance spokesman for the Democrats. He is expected to play a key role in the new government's financial and economic policy.

He said the incoming government will try to share common values on policy management with the BOJ to stabilise financial markets. (Editing by Hugh Lawson)

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