TOKYO (MNI) – A senior Japanese government official said Wednesday
that the government wants to overcome deflation in fiscal 2011 starting
in April 2011.
“Beating deflation remains the biggest issue for the government led
by Prime Minister Naoto Kan. We would like to overcome deflation in
fiscal 2011,” Satoshi Arai, the state minister in charge of national
policy and consumer affairs, told Market News International and other
news media in a group interview.
Arai praised the BOJ’s efforts to fight deflation.
“The BOJ has enacted various measures and made the utmost effort to
beat deflation,” so the government doesn’t see any imminent need for the
BOJ to take additional monetary policy steps to fight price declines, he
said.
But Arai added that the government will need to maintain close
coordination with the BOJ on economic policy even after Japan has beaten
deflation.
“We need to be in close contact with the BOJ even after Japan has
beaten deflation. But interest rate policy is the BOJ’s own policy
measure,” Arai said.
hinoue@marketnews.com
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