Press Conference by the Chief Cabinet Secretary (Excerpt)

Q&As

(Abridged)

REPORTER: The United States' (U.S.) Federal Reserve Board (FRB) has decided to maintain its current low interest rate policy until late 2014 as well as to set an inflation target of 2%. Chairman Ben S. Bernanke has also indicated the possibility of implementing further easing. Please tell us what the Japanese Government thinks about this latest FRB decision and how the Japanese Government analyzes its impact on the Japanese economy moving forward?

CHIEF CABINET SECRETARY FUJIMURA: The U.S. Federal Open Market Committee (FOMC), which I understand is similar to the Policy Board of the Bank of Japan, met on January 24 and 25. And I understand that the FOMC decided to modify the period of maintaining the close to zero federal funds rate from up to mid-2013 to at least through late 2014. In addition, I understand that the FOMC revealed an inflation goal of 2% year-on-year, which is measured by the personal consumption expenditure deflator. However, I would like to refrain from commenting on the evaluation of other countries' monetary policies. We will continue to closely monitor the management of the economy in the U.S. and its financial situation.

(Abridged)