BOJ Deputy Gov: U.S.'s failure to lift debt ceiling would hit global economy

Reuters

MATSUE, Japan, Oct 9 (Reuters) - Bank of Japan DeputyGovernor Hiroshi Nakaso said on Wednesday that failure by theUnited States to lift its debt ceiling would have a significantadverse effect on the global economy by pushing up long-terminterest rates and creating volatility in foreign exchangerates.

"A prompt resolution of the fiscal consultation issue iscritical for the global economy, including Japan," Nakaso saidin a speech to business leaders in Matsue, western Japan.

The BOJ offered an intense burst of monetary stimulus inApril, pledging to double the base money via aggressive assetpurchases to achieve its 2 percent inflation target in twoyears. It has stood pat on policy since then.

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