Press Conference by the Chief Cabinet Secretary (Excerpt)

Q&As

REPORTER: Today the Bank of Japan (BOJ) decided to implement additional monetary easing. Can I ask for the Government’s evaluation of the decision made by the BOJ?

CHIEF CABINET SECRETARY SUGA: It is my understanding that the decision made by the BOJ today was based on uncertainties in overseas economies and global financial markets and was determined to be a necessary measure to achieve the price stability target. As such, the Government would like to welcome the decision by the BOJ. The Government will continue to work closely with the BOJ towards exiting deflation and achieving sustainable economic growth and will make concerted efforts to mobilize all kinds of policies.

REPORTER: I have a related question. Next week the Government is scheduled to compile new economic policies. What are your thought about how these new policies will work synergistically with the monetary easing that has been decided by the BOJ?

CHIEF CABINET SECRETARY SUGA: The Government will engage in cooperative efforts to ensure that the economic policies that are scheduled to be approved by the Cabinet on August 2, will have a synergistic effect with the decision made today by the BOJ.

REPORTER: I have a further related question. While the decision to implement further monetary easing was made with the aim of spurring consumption and investment, the BOJ has kept negative interest rates of minus 0.1 percent in place and a sense of disappointment is now pervading the markets, which had expected quantitative easing measures to be on a larger scale. As a result the yen is now strengthening against other currencies. What are your thoughts about sense of disappointment in the markets in response to the BOJ’s decision today?

CHIEF CABINET SECRETARY SUGA: I don’t think there is necessarily a sense of disappointment. Although the exchange rate has fluctuated, it is maintaining a rate of around 103.5 yen to the dollar. The stock index is also currently at 16,569, which is up 92 yen on the previous day’s trading. I would like to refrain from making any specific comment about such market movements, but it is my belief that the current fluctuations are a case of extreme sensitivity in the markets. There is absolutely no change to the Government’s stance of continuing to closely watch currency market movements with a sense of urgency and of taking the necessary actions to ensure that excessive volatility does not persist.

(Abridged)
 
REPORTER: At the National Governors’ Conference today it was decided to establish a study group to discuss the issue of alleviating the burden of bases on Okinawa Prefecture. As Minister in charge of Alleviating the Burden of the Bases in Okinawa what is your view on the establishment of this study group?

CHIEF CABINET SECRETARY SUGA: The Government is engaged in measures based on a stance of doing everything we can to maintain deterrence under the Japan-U.S. alliance and also alleviate the burden of bases on Okinawa. My understanding is that the National Governors’ Conference also seeks to share the burden of Okinawa nationwide and it is from this perspective that the study group has been established. The Government welcomes the fact that such a forum for discussion has been established.

(Abridged)

REPORTER: I have a question about the presidential election campaign in the United States. Ms. Hillary Clinton has given her acceptance speech at the 2016 Democratic National Convention after having received the Democratic presidential nomination. In her speech she announced policies to fight against terrorism, including ISIL, and strengthen relations with allies. On the other hand, she did not directly mention the Trans-Pacific Partnership (TPP) Agreement. How to you evaluate her speech?

CHIEF CABINET SECRETARY SUGA: Firstly, as I have stated previously, the United States presidential election is the most watched election campaign all over the world and is one that has a global impact. It is the American people who will decide the next president of the United States and the Government will continue to watch the election campaign. I would like to refrain from making any comment about individual matters relating to the election campaign. However, now that both the Democratic and Republican party candidates have been selected, the campaign will now move into full gear and the Government will continue to watch developments closely. In any event, whoever becomes President of the United States, what will not change is the Japan-U.S. alliance is a cornerstone of our foreign policy and one that contributes to the peace and safety of the Asia-Pacific region, and therefore we will continue to cooperate closely with the United States.

(Abridged)