TOKYO (AFX-ASIA) - Bank of Japan governor Masaru Hayami said the bank still has room to increase purchases of government bonds up to the level of the outstanding balance of bank notes in circulation. Hayami has previously stated that the bank cannot increase bond purchases beyond the level of outstanding notes. "The BoJ is now buying 800 bln yen in government bonds monthly and the current policy is that we will continue to buy until reaching the outstanding balance of bank notes," he said. Asked if the bank can increase outright purchases beyond 800 bln yen, Hayami said: "This is a matter of considering the speed. There is still room before reaching the outstanding balance" of notes. "We are going to open a policy board meeting tomorrow but on this occasion we will discuss how to contribute to support the government's structural reforms on the part of monetary policy," he said. "Although, I know there is division over the effects of any further quantitative monetary easing," he said.