Press Conference by the Chief Cabinet Secretary (Excerpt)

Q&As

• Monetary policies
• Prime Minister's attendance to the G8 Summit and explanations of Abenomics
• The Japan-U.S. summit telephone talks

(Abridged)

REPORTER: Earlier this year the Bank of Japan (BOJ) announced what they referred to as "a new dimension of monetary easing", but today the yen exchange rate returned to the levels at which it was trading prior to the BOJ announcement. Does the Government believe that Abenomics is functioning as planned?

CHIEF CABINET SECRETARY SUGA: The real economy, or lead indicators, are all positive. Therefore, we are quite confident in the economy.

Earlier today, we held a monthly Ministerial Council meeting. I would like to add that during the meeting the BOJ Governor reported that one contributing factor may be that investors are selling off their stocks to capitalize on rising share prices.

Regardless, this does not change the Government's stance at all of thoroughly implementing measures that need to be implemented, without wavering between hope and despair over every fluctuation in the stock market.

REPORTER: The market believes that the U.S. Federal Reserve Bank's (FRB) exit strategy may be a contributing factor in addition to Japan's growth strategy and the BOJ's monetary policy. Ever since the Global Financial Crisis, the FRB has maintained a monetary easing exit strategy, but what influence do you believe this exit strategy will have on the global and Japanese economies?

CHIEF CABINET SECRETARY SUGA: We have full trust in the monetary policy implemented by BOJ Governor Kuroda and we believe that the BOJ will respond to the situation appropriately, while keeping an eye on developments in the market.

(Abridged)

REPORTER: I believe that the Prime Minister will be attending the G8 Summit this weekend where he will meet with a number of his counterparts from numerous developed nations and Eastern European nations. Will there be any changes to the explanation of Abenomics following the recent wild fluctuation of stock prices and the yen exchange rate? In other words, how will the Prime Minister communicate Japan's current economic policy?

CHIEF CABINET SECRETARY SUGA: I believe that the Prime Minister will provide a comprehensive explanation on the Growth Strategy and the Basic Policies, which are scheduled to gain Cabinet Approval tomorrow, during meetings with his overseas counterparts, including at the G8 Summit.

REPORTER: I believe that so far the Government has had to provide explanations as to why it believes the depreciation of the yen was not excessive. However, now that the yen is appreciating, and stock prices have returned to the levels they were at prior to the monetary easing, what are your thoughts on this?

CHIEF CABINET SECRETARY SUGA: While the yen was climbing, it reached 76 yen to the dollar, but today the yen is only 94 yen to the dollar.

(Abridged)

REPORTER: I would like to ask a question in relation to the Japan-U.S. summit telephone talks that took place this afternoon. I believe that the talks ended up taking a bit longer than scheduled, but could you share with us the Government's evaluation of these talks from the perspective of the Japan-U.S. Alliance?

CHIEF CABINET SECRETARY SUGA: I believe that Deputy Chief Cabinet Secretary Kato provided a brief on the details of the talks to reporters. Therefore, I will not go into details on the talks again. Leading up to the U.S.-China Summit Meeting, Mr. Thomas Donilon, National Security Advisor to the President, called me prior to his visit to China in preparation for the Summit Meeting. During this phone call, we confirmed our stance before Mr. Donilon went to China for negotiations. The U.S. also reported on the progress of negotiations. Furthermore, immediately after the U.S.-China Summit Meeting, we received a report on the details of the meeting via diplomatic routes, while President Obama himself also phoned us to make a report. Given this, we believe that the relationship of trust as allies is clearly established. I will not go into the particulars of the phone call, but we understand from this telephone meeting that the U.S. entered the U.S.-China meeting in support of Japan's stance.

REPORTER: Some believe that the reason Japan insisted on this telephone conversation was to put China on the back foot. What is your response to this?

CHIEF CABINET SECRETARY SUGA: That is entirely untrue. The U.S had already mentioned making the phone call prior to the U.S.-China Summit Meeting. I understand that this is their way of showing consideration for an ally nation.