KUALA LUMPUR (AFX-ASIA) - Japan's Minister for Economic and Fiscal Policy Heizo Takenaka said Japan is not expected to see any serious negative GDP growth this year.
Asked if the government will be revising downwards its estimate for corporate earnings following the release of the July monthly economic report, he said: "It is not decided yet."
The government will monitor the situation closely before making any decisions, he added.
Asked for his opinion of the yen's level presently, Takenaka said it is difficult to predict the level as structural reform may bring about downward pressure on the yen but the government is prepared to take proactive measures to offset the downward pressure. He said much will depend upon the structural reform to be implemented.
Asked if there are plans to introduce a supplementary budget, he said: "It is too early to judge (whether a supplementary budget is needed)."
He added that the government needs to look at the GDP growth rate in the sec ond quarter before making a decision.
Asked if there are any plans to further ease Japan's monetary policy, Takenaka said decisions on monetary policy rests on the Bank of Japan (BOJ) and he believes that the BOJ is ready to take decisive measures according to those announced in March.
Asked what the government will do to increase private domestic consumption in Japan, he said the only way is to increase "life time income", which include promoting industry reform, supply-side policy and structural reform.
"We do not consider any short-term policies to stimulate (consumption)," he added.
Asked if he expects to see another currency crisis, Takenaka said: "Definitely not."