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Press Conference by the Chief Cabinet Secretary

Wednesday, June 5, 2013 (PM)

Press Conference by the Chief Cabinet Secretary (Excerpt)

[Provisional Translation]


  • The announcement of government polices under the Growth Strategy and share price fluctuations

REPORTER: Today, at around the same time as the Prime Minister was announcing the third round of government policies under the Growth Strategy, the Nikkei Stock Average dropped by more than 500 yen, almost going below 13,000 yen. What is the Government's reaction to and view of these share price fluctuations?

CHIEF CABINET SECRETARY SUGA: I am aware that the share index has fallen today, however, as I have stated previously, in order to avoid causing unnecessary confusion in the markets I will refrain from making any specific comment concerning share price fluctuations. What I can say is that Japan's economy is, without a doubt, gradually picking up and it is therefore of the utmost importance to respond calmly. The Government will continue to monitor trends in the markets and their impact and we will continue to advance our policy of seeking to overcome deflation in the near term and to achieve private sector-driven sustainable economic growth through the integrated implementation of the three prongs of economic revitalization.

REPORTER: You have just mentioned the three prongs of economic revitalization and so do you think it is the case that the announcement today about growth strategy and relaxation of regulations, which are items that are of particular interest to overseas investors, has not lived up to the expectations of the market in some way?

CHIEF CABINET SECRETARY SUGA: I don't feel that is the case at all. As I have stated frequently in the past, in the past approximately five months since the inauguration of the Abe Administration the stock market has risen 50 percent and therefore I believe that it is natural for stock prices to go through a period of adjustment. The overall economic pictures shows signs of steadily picking up.

REPORTER: It may be the case that the stock market has risen 50 percent in five months, but it can also be said that this was due to the size of market expectations. Do you not think that the reverse could also be true and that at the point when share prices have started to drop, or have entered a period of adjustment, it is time for the Government to consider this reaction from the markets with regard to policy?

CHIEF CABINET SECRETARY SUGA: To be honest, the Government is now in its sixth month of national administration and during this time the stock mark rose at one point by more than 70 percent. It generally takes approximately one year for the stock market to rise by even 50 percent, so you can appreciate that this has been a steep rise. The Government is committed to doing what must be done to steadily advance policies one by one and with a sense of speed, and in so doing we expect the economy to pick up. I do not see any problem in continuing to do what must be done.

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