Bank of Japan board member Ryuzo Miyao said on Wednesday the country's economy may get less support than initially expected from overseas demand as the recovery in the U.S. and European economies loses steam.
Japan's economy will continue a moderate recovery based on output and exports after supply constraints are resolved, Miyao said in a speech to business leaders in Hakodate, in the northernmost Japanese prefecture of Hokkaido.
But there are some concerns over the recovery scenario, he added, also citing persistent yen rises, higher energy costs and prolonged deflation expectations as factors that could hurt growth.
The BOJ eased monetary policy last month by topping up its asset buying program on the same day that Tokyo intervened in the currency market to stem sharp rises in the yen.
It kept its monetary settings steady this month but has expressed its readiness to ease further if its forecast of a moderate economic recovery later this year is threatened.
A former academic and an expert on monetary policy, Miyao has voted with the majority since joining the board last year. He is regarded as among those on the board who are more pessimistic about the economy.
(Reporting by Leika Kihara; Editing by Edmund Klamann)