Japan PM Abe expects BoJ's monetary policy to support growth

Prime Minister Shinzo Abe told parliament that he expects the Bank of Japan to support growth through monetary policy as the economy is emerging from years of deflation. Abe, who has vowed to accelerate government reforms launched under his predecessor, Junichiro Koizumi, also told a plenary session of the lower house that there would be "no fiscal reform without economic growth," stressing the need to ensure sustained growth while enforcing spending cuts. "The government and the BoJ will work together" to achieve sustained economic expansion under price stability, Abe said in reply to questions from a fellow ruling Liberal Democratic Party lawmaker. "I expect the BoJ to support the economy through monetary policy," he added without elaborating further. After the central bank in July conducted its first rate hike in six years, BoJ policymakers have said they will hike interests rate "slowly" while watching for both upside and downside risks.