AOMORI, Japan (Reuters) - Bank of Japan Deputy Governor Masazumi Wakatabe said on Thursday the central bank must be increasingly vigilant to heightening risks to its forecast that the country's economy will continue to expand moderately as a trend.
Wakatabe also said the BOJ must maintain its ultra-loose monetary policy for as long as needed to sustainably achieve its 2% inflation target.
"If the (U.S.-China) trade friction becomes prolonged and persistent, downward pressure on the global economy may heighten not only through the direct effects of the tariff hikes but by hurting capital expenditure and souring market sentiment," he said in a speech to business leaders in Aomori, northern Japan.
(Reporting by Leika Kihara; Editing by David Dolan)
