Japan's stimulus plan to urge BOJ focus on boosting growth, draft outline shows

TOKYO, Nov 10 (Reuters) - Japan's government will urge the central bank to focus on achieving strong economic growth accompanied by stable prices in an outline of its stimulus package, a draft of the outline seen by Reuters showed on Monday.

The comment likely underscores Prime Minister Sanae Takaichi's preference for the Bank of Japan to keep interest rates low to help underpin a fragile economic recovery.

The package will focus on measures to cushion the blow to households from rising living costs, investment in crisis management and growth areas, as well as steps to boost Japan's defence capabilities, the draft of the outline showed.

"It is extremely important for monetary policy to be guided in a way that achieves strong economic growth and price stability," the government said in the draft outline.

"The government will continue to coordinate closely with the BOJ so that Japan does not revert to deflation, and achieve sustained economic growth under stable prices," it said.

The government is expected to finalise the package on November 21, making it Takaichi's first major economic initiative since taking office last month.

The Nikkei newspaper reported on Sunday that Takaichi's economic stimulus package will include tax cuts to spur investment focused around 17 key industries.

Government officials were not immediately available to comment.

(Reporting by Takaya Yamaguchi, writing by Leika Kihara; Editing by Sam Holmes)