Fukui says BOJ wants 'favourable money supply'

``We are attempting to make our monetary policy effective, and we would like to eventually achieve a favourable expansion of money supply,'' Fukui said at the budget committee of the upper house of parliament in Tokyo. Still, ``it will take a while'' before the bank can achieve the goal, he said.

Fukui also said it was important for the Bank of Japan to implement policies to end Japan's nearly six year's of deflation while paying attention to the level of price increases the BOJ should aim for.

Fukui also said the Japanese economy hasn't recovered enough to allow the central bank to adopt an explicit inflation target. The economy expanded at a 6.4 percent annual rate in the fourth quarter, its fastest pace of growth since 1990.