* New finmin shares PM's view inflation above 1 pct needed
* Says BOJ has taken appropriate, flexible steps on deflation
* Won't guide currency rates in certain direction -Noda
* Says Japan to report fiscal reform plans to Toronto G20
* Govt names all-out monetary easing advocate as vice finmin (Adds quotes, details)
By Tetsushi Kajimoto
TOKYO, June 9 (Reuters) - Japan's new finance minister said the government and the Bank of Japan should each do their part to beat deflation as early as possible but that he will not press the central bank to adopt a rigid inflation target.
Yoshihiko Noda also said he would not seek to guide currency rates in a certain direction, while repeating a G7 stance that rapid, disorderly moves would hurt stability in the economy and financial markets.
The BOJ has taken steps based on its understanding of price stability as (inflation of above) zero to 2 percent -- with a median at 1 percent -- which I think is reasonable, Noda told reporters in a group interview on Wednesday.
Prime Minister (Naoto) Kan's view is that we should achieve above 1 percent (inflation). I share his view but that is not to advocate inflation targeting.
The government appointed Motohisa Ikeda, a proponent of all-out monetary easing who has called for the BOJ to target 2 percent inflation in around 2 years, as deputy finance minister.
It is unclear how the two will iron out differences in emphasis.
As Noda's deputy, Ikeda will have the right to attend BOJ policy-setting meetings as one of two government representatives. They cannot vote but can express their views and request delays in BOJ board votes.
The BOJ has kept interest rates at 0.1 percent since late 2008, and eased monetary policy last December and again in March by setting up and later expanding a facility offering cheap funds to banks.
It also outlined last month a new loan programme aimed at encouraging banks to lend more to industries with growth potential.
I think the BOJ has taken appropriate and flexible steps ... The BOJ says it will keep easy monetary conditions and that stance is fine by me, Noda said, suggesting he will not press the BOJ to take further easing steps, at least for now.
I believe we will continue to hold regular meetings with the governor and his staff, so we will share our views further.
The government is aiming to craft medium- to long-term fiscal reform plans by the end of this month in a bid to reign in Japan's huge public debt, which is running at about 200 percent of GDP, while facing the risk of a downgrade in its sovereign credit rating.
Long-term interest rates remain stable at low levels at the moment ... but we cannot be content with this forever. We must conduct debt management with a sense of crisis while communicating with markets to have JGBs smoothly absorbed.
He pledged that Japan will report its fiscal reform plans to the June 26-27 meetings of Group of 20 leaders in Toronto so as to win international trust in its efforts to fix its debt woes.
Our debt stock stands at the worst levels in the world, so we must show a time frame in reducing the debt pile and win an evaluation that Japan takes heed of the need for fiscal discipline. (Editing by Michael Watson)