TOKYO (AFX-ASIA) - Bank of Japan governor Masaru Hayami said he cannot deny the possibility that Japan will fall into a deflationary spiral. "I can't deny there is a risk of deflationary spiral if Japan faces an unexpected shock," Hayami told a Lower House budget parliamentary economic and fiscal policy committee. "The BoJ needs to continue its current monetary easing policy to avoid entering a deflationary spiral, together with the government's efforts to draw on the positive side of structural reforms," he said. He also added: "We are not considering introducing an inflation target at this point, given current price moves."