Press Conference by the Chief Cabinet Secretary (Excerpt)

Opening Statement by Chief Cabinet Secretary Fujimura

CHIEF CABINET SECRETARY FUJIMURA: Today at lunchtime, given that the Governor of the Bank of Japan (BOJ) had recently returned from a visit to Europe, a meeting to exchange opinions on the recent financial and economic situation, focusing on matters in Europe, was held between the Government and the BOJ. There were seven persons attending the meeting. These were, from the BOJ: Governor Shirakawa, Deputy Governor Yamaguchi and Deputy Governor Nishimura; and from the Government: Prime Minister Noda, myself, Minister of State for Economic and Fiscal Policy Furukawa, and Minister of Finance Azumi. The current instability of the global financial markets, sparked by the recent debt crisis in Europe and the escalating downturn in overseas economies present serious downside risks to the Japanese economy. In today's meeting we engaged in a frank exchange of opinions with BOJ and affirmed that it is of the utmost importance for the Government and the BOJ to continue to make concerted efforts towards extricating Japan from the adverse effects of deflation on the economy. In addition, at the meeting today it was agreed that in view of the current economic situation, it would be preferable to increase the frequency of these meetings and hold them on a regular basis, led by the Prime Minister and the Governor of the BOJ to the extent that their schedules permit, as a forum for exchanging opinions and sharing views. By holding these meetings more frequently the aim is to further enhance communication between the Government and the BOJ.

Q&As

(Abridged)

REPORTER: With regard to the meeting with Governor Shirakawa, you have stated that such meetings will be held regularly and with greater frequency. Did the idea for this meeting come from the Prime Minister?

CHIEF CABINET SECRETARY FUJIMURA: This meeting is a pre-existing one that has been held on a regular basis between the BOJ and the Government. Also, given that in the discussions within the Democratic Party of Japan (DPJ) at the end of the year on the comprehensive  reform of  social security and tax systems, there were very strong opinions calling for thorough cooperation between the Government and the BOJ with regard to economic policy, in particular the issue of extricating Japan from a deflationary economy, in response the Prime Minister has suggested holding these regular meetings more frequently.

(Abridged)