[Provisional Translation]

Prime Minister Shinzo Abe held the 15th meeting in 2016 of the Council on Economic and Fiscal Policy at the Prime Minister's Office.

At the meeting, there was “intensive discussion related to monetary policy, commodity prices and other issues,” and discussion about “work style reform and macroeconomics,” and “reform based on the outlook for the economic structure in 2030.”

Based on the discussion, the Prime Minister said,

“In the discussions concerning monetary policy, commodity prices and other issues, since the start of the year, we have confirmed that monetary policy is being effective in such developments as the lowering of the interest rates related to the procurement of corporate financing, an increase in the total amount of corporate bonds being issued, and the relaxing of the lending attitudes at fiscal institutions. 

The Bank of Japan has just decided to introduce a new system to strengthen monetary easing following their comprehensive verification of the situation. I understand that this is being done in order to achieve the 2 percent price stability target as soon as possible. I welcome this initiative. I hope that the intentions and effects of monetary policy will be thoroughly communicated to the markets.

During the conversation about work style reform and macroeconomics, Mr. Niinami made the powerful remark that his company would take the lead in aiming for a 3% increase in wages toward the Spring employer-employee negotiations next year. I expect that movement toward an increase in wages will spread throughout the business world and lead to an exit from deflation.

Private sector members reported that a task force will be set up to debate reforms based on the outlook for the structure of the economy in 2030. I hope that you will deepen wide-ranging discussion on this. Thank you.”