BOJ Morimoto: do not see risks to economic outlook

WAKAYAMA, Japan (Reuters) - Bank of Japan board member Yoshihisa Morimoto said on Thursday that external demand is a little weak but he does not think risks to Japan's economic outlook have materialized.

If risks do materialize and require the BOJ to change its forecasts then the central bank would adjust policy, Morimoto said in a press conference after meeting with business leaders in Wakayama, western Japan.

The BOJ is not limited to reacting to economic data, Morimoto said, suggesting that the central bank is prepared to be proactive if it needs to adjust policy.

The BOJ maintained its expansionary monetary policy on Tuesday and extended special loan programs to help buoy economic growth, signaling its resolve to keep the positive mood generated by Prime Minister Shinzo Abe's reflationary policies from fading.

(Reporting by Stanley White; Editing by Dominic Lau)