NEW YORK - September 6, 2010 - Japan’s and Australia’s central banks signaled that the outlook for U.S. growth is deteriorating, making it tougher for them to set monetary policy.

The Reserve Bank of Australia extended a pause in raising interest rates “for the time being” today, even after the nation’s gross domestic product rose the most since 2007. The Bank of Japan said it’s prepared to add more monetary stimulus after last week’s emergency decision to expand a credit program that followed a tumble in the dollar against the yen.

Both banks singled out the U.S., with the RBA saying growth there looked “weaker” in the second half, and the BOJ citing “uncertainty about the future, especially for the U.S.” The statements highlight the threat of an ongoing and long lasting Depression for the world’s biggest economy, even for nations benefiting from surging demand in Asian emerging markets, led by China.

“If the U.S. economy slows more than forecast and if there is a double-dip, then clearly there are significant implications for policy elsewhere,” said Mitul Kotecha, Hong Kong-based global head of foreign-exchange strategy at Credit Agricole CIB. “For Australia and Japan, the Chinese economy is more important and the bigger focus is whether China slows more than expected but they can’t ignore a slowing in the U.S. economy.”