Press Conference by the Chief Cabinet Secretary (Excerpt)

Q&As

REPORTER: I have a question regarding the meeting of the International Finance and Economic Assessment Council. I understand Professor Jean Tirole was invited to today’s meeting for exchanging views. Can you please tell us what specific recommendations and so on were made?

CHIEF CABINET SECRETARY SUGA: Today, the fourth meeting of the International Finance and Economic Assessment Council was held. We invited Professor Jean Tirole of France, recipient of the Nobel Prize in Economic Sciences, to ask for his analysis of the world economy. With regard to the content of the meeting, after the meeting we made the Professor’s comments public according to the wishes of the Professor. As is stated in the comments, we asked for the Professor’s opinions regarding the economic issues that are currently facing the global economy, in particular, responses to climate change, overcoming the instability of the Eurozone, and how to maintain good control over global financial trends such as low interest rates. In addition, we asked the Professor about structural reforms that would be indispensable for restoring confidence in the future and making countries less vulnerable to unforeseen situations. We were able to hear views regarding the global economy from a renowned, leading economist from Europe, and in this regard, it was a very meaningful meeting in the lead-up to the Summit.

REPORTER: I have a related question. Exactly what did the Professor say regarding his opinion of Japan’s present situation?

CHIEF CABINET SECRETARY SUGA: Due to the strong wishes of the Professor, I would like to refrain from further disclosing the Professor’s comments beyond what has already been disclosed.

REPORTER: What questions did Prime Minister Abe ask the Professor? What exchanges took place between the two?

CHIEF CABINET SECRETARY SUGA: The Prime Minister asked questions in response to the Professor’s explanations, as well as what the Professor thought was necessary for Japan’s holding of the Ise-Shima Summit.

REPORTER: I just have one last question. Were any references made to the consumption tax or fiscal stimulus?

CHIEF CABINET SECRETARY SUGA: These topics did not come up at all.

REPORTER: Today the yen is trading at the 109 yen range against the dollar. Can you please comment on the yen’s continued rise?

CHIEF CABINET SECRETARY SUGA: We have seen lopsided movements in the recent exchange market. As was confirmed at the G20, we regard that excess volatility and disorderly movements in exchange markets can have adverse implications. Prime Minister Abe’s comment that arbitrary exchange interventions in the market should be refrained has received particularly a lot of attention. However, at the G20 meeting in Shanghai in February, the G20 affirmed that it would refrain from competitive devaluations and would not target exchange rates for competitive purposes. My understanding is that based on this perspective the Prime Minister said it was not appropriate to continue exchange intervention over the long-term. We will closely follow exchange market movements with a sense of urgency, and depending on the case, take the necessary measures.

REPORTER: Please allow me to confirm once again. Is it the Japanese Government’s policy to avoid exchange interventions?

CHIEF CABINET SECRETARY SUGA: As I stated moments ago, the Government regards that excess volatility and disorderly movements in exchange markets can have adverse implications. We will closely follow the situation with a sense of urgency, and depending on the case, take necessary measures.

(Abridged)