Press Conference by the Chief Cabinet Secretary (Excerpt)

Q&As

• Prime Minister's visit to TEPCO's Fukushima Daiichi Nuclear Power Station
• The quantitative easing of the U.S.

REPORTER: I have a question regarding the Prime Minister's visit to the nuclear power station in Fukushima. First of all, what do you consider to be the purpose and intention of this visit?

CHIEF CABINET SECRETARY SUGA: The Prime Minister has been visiting the disaster-affected area once a month. This current visit to Tokyo Electric Power Company's (TEPCO) Fukushima Daiichi Nuclear Power Station is part of these visits. At his destination, the Prime Minister is expected to make observations at the premises of the nuclear power station, and confirm the progress of the contaminated water measures. In particular, this visit comes in the wake of the Government's compilation of the Basic Policy for the Contaminated Water Issue at the beginning of this month, and in the wake of the Prime Minister's announcement of a program at the International Olympic Committee (IOC) Session aimed at fundamentally settling this issue. The Prime Minister has expressed his commitment towards deciding on and executing such programs responsibly. Therefore, I believe today's visit to Fukushima is in line with the Government's stance, which is to play a proactive role in settling this issue without leaving the matter up to TEPCO.

REPORTER: I have a related question. Around when was this visit decided?

CHIEF CABINET SECRETARY SUGA: I believe it was September 3 that the Basic Policy for the Contaminated Water Issue was approved. It was after that that the Prime Minister himself decided to make the visit.

REPORTER: So it was sometime after September 3 and before the Prime Minister's departure for the IOC Session?

CHIEF CABINET SECRETARY SUGA: Yes. As the Government decided on the contaminated water measures, the Prime Minister, holding himself accountable, decided to fully deal with the situation by examining the site in person.

REPORTER: The Federal Reserve Board (FRB) has decided to continue quantitative easing. What are the thoughts of the Government?

CHIEF CABINET SECRETARY SUGA: At yesterday's policy-making meeting, the FRB decided to maintain its existing monetary policy. Economic activity in the U.S. has been expanding at a moderate pace. The economic outlook was revised upwards. Nevertheless, it is deemed that economic activity has been expanding at a moderate pace. Based on this recognition, I believe the FRB decided to maintain its existing policy. Going forward, I believe this U.S. monetary policy will be carried out to achieve the two goals of maximum price stability and employment. Japan does not have anything to say in particular. However, at the recent G20, emerging market economies have expressed concerns towards, for example, the acceleration of currency weakening due to the contraction of U.S. monetary easing. Furthermore, it was confirmed that future changes to monetary policy settings will continue to be made by way of carefully monitoring the economic trends and avoiding economic impact. I believe it was based on these circumstances that this decision was reached.

REPORTER: The top priority of the Abe administration is to exit deflation. Do you think this monetary policy of the FRB is desirable for Japan?

CHIEF CABINET SECRETARY SUGA: I believe the Government should not make any particular comments regarding the decision of the U.S. The Government of Japan will continue to promote the integrated implementation of the three arrows and strive to quickly break away from deflation. In addition to these efforts that the Government will naturally pursue, the Government will steadily work to achieve sustained economic growth led by private-sector demand.

REPORTER: If I may confirm one more time, what impact on the Japanese economy do you think there will be from the decision of the Federal Open Market Committee (FOMC) to maintain its existing policy?

CHIEF CABINET SECRETARY SUGA: A short while ago, the U.S. has decided to maintain its existing monetary policy based on its two goals of maximum price stability and employment. I believe it is not appropriate for Japan to make any comments regarding this decision. However, it is the basic view of Japan to make steady efforts to implement the three arrows of Abenomics to achieve growth of the Japanese economy and exit from deflation.

(Abridged)

REPORTER: I would like to ask a question concerning the quantitative easing of the U.S. As Japan gives priority to exiting deflation through Abenomics, it is now pursuing fiscal consolidation and consumption tax increase in a sort of contradictory manner. With the consumption tax increase and other measures entering into the picture in the future, what is the possibility that the Government will request that the Bank of Japan carry out further monetary easing or additional easing to maintain Abenomics? Governor Kuroda has made such comments. What is the Government's view at this moment in time?

CHIEF CABINET SECRETARY SUGA: The current situation in Japan is, as you are aware, 3.8% growth in the April-June quarter. Therefore, in principle, the Government will steadily take steps without too much haste while closely monitoring the current situation.