BOJ Suda Urges Japan Govt, Firms To Push Reform For Growth 9  MAR   TOKYO - Bank of Japan policy board member Miyako Suda on Wednesday urged the government and private sector to push for structural reform -- reining in growing public debt and adjusting to changing global markets -- in order to take the economy onto a sustained growth under price stability. TOKYO (MNI) - Bank of Japan policy board member Miyako Suda on Wednesday urged the government and private sector to push for structural reform -- reining in growing public debt and adjusting to changing global markets -- in order to take the economy onto a sustained growth under price stability. In an opening speech at a panel discussion, Suda also repeated the BOJ's official line that the central bank will continue to support the economy and flight deflation by maintaining the very accommodative financial environment "persistently" while upside and downside risks are largely balanced now. Monetary policy can back up structural reform by seeking to stabilize prices and ease the pain caused by necessary changes following economic or financial crises, she said. But she warned that "monetary policy can indirectly support structural reform but has no effect on pushing forward structural reform in itself." "If structural reform is left on the back-burner, it could cancel monetary policy's expected effects of buoying the economy." Suda noted that the uncertainty and gloom overhanging Japanese businesses and households stem from the shrinking working population and falling savings rate, which will lower the country's per capita GDP, as well as globalization and surging government debt. Japan must consider how to adjust to changing overseas markets as more firms trade with emerging economies and countries with resources, she added. "If there is no prospect for fiscal consolidation and it becomes difficult to estimate how the public sector gets involved in the private economy, it will cause uncertainty for companies and other private economic entities in planning their activity," Suda said. tokyo@marketnews.com ** Market News International Tokyo Newsroom: 81-3-5403-4833 ** [TOPICS: M$J$$$,M$A$$$,MMJBJ$,MGJ$$$,MT$$$$] 3/9/2010 9:08:00 PM