UPDATE 3-BOJ keeps policy steady, signals chance of easing in October

* Keeps short-, long-term rate targets intact

* Closer attention needed to risks - BOJ

* Adds will re-examine economy, price moves in Oct

* BOJ more eager to act given heightened global risks - Kuroda (Adds Kuroda quotes from news conference)

By Leika Kihara and Daniel Leussink

TOKYO, Sept 19 (Reuters) - The Bank of Japan kept monetary policy steady on Thursday but signaled the chance of expanding stimulus as early as its next policy meeting in October by issuing a stronger warning over the risks threatening the economy.

As expected, the BOJ maintained its short-term interest rate target at -0.1% and a pledge to guide 10-year government bond yields around 0% under its yield curve control (YCC) policy.

Announcing its decision, the central bank said in a statement that it was becoming necessary to pay "closer attention" to the chance that the economy will lose sufficient momentum to achieve the BOJ's 2% inflation target.

"Taking this situation into account, the BOJ will re-examine economic and price developments at its next policy meeting" when it reviews its long-term growth and price forecasts, it said.

Addressing a news conference later, Governor Haruhiko Kuroda said: "I don't think Japan's economic outlook is worsening sharply, or that the economy is about to lose momentum for hitting our price goal."

But he went onto say there were mounting risks surrounding overseas growth, and that was making BOJ policymakers "more eager to act" than when they last met in July.

"I don't think we need to overhaul our yield curve control framework. If we were to act, we will aim at lowering real interest rates and narrowing risk premia. That can be done by steps we are taking now, such as buying government bonds and exchange-traded funds," Kuroda said.

"Deepening negative interest rates will be among options if we were to ease further," he said. "As to what we will do, that will depend on economic conditions at the time."

The BOJ's announcement came hours after the U.S. Federal Reserve cut interest rates to sustain a record-long economic expansion and insure against risks such as weak global growth and resurgent trade tensions.

"The BOJ stood pat today as yen moves were steady after the decisions by its U.S. and European peers, giving it some breathing room," said Yasunari Ueno, chief market economist at Mizuho Securities.

"But the chance of a renewed yen spike remains a source of concern for the BOJ since central banks are now in a competition to ease policy," he said, adding that the trigger for additional easing would be a yen rise above 100 to the dollar.