28 August 2001, 08:57 Takenaka says 5 pct jobless rate expected, no plan for new emergency scheme
TOKYO (AFX-ASIA) - State Minister for Economic and Fiscal Policy
Heizo Takenaka said the 5.0 pct jobless rate announced today was
expected and the government has no plan to launch any new emergency
scheme to support employment.
"The rise in unemployment does not run counter to our expectations.
We have no plan to launch an emergency scheme at present," he told a
regular press briefing.
Takenaka said Japan has not fallen into a deflationary spiral, but
added: "It is necessary not to let Japan fall into one."
The government aims to help the economy recover by guiding it
towards inflation, helping banks reduce their debt burden, though it is
uncertain when the economy will recover even if it escapes deflationary
pressure.
"We are aiming to make it easier for Japanese banks to write off
bad debts," Takenaka said, adding, however, that structural reform must
continue for a real recovery.
Asked whether the Bank of Japan should set an explicit inflation
goal, he said: "The BoJ has already adopted inflation targeting as it
previously said it will continue its easing until CPI goes back to
zero."
Takenaka said the issue of the central bank's independence should
be considered separately to the bank's goals and the means it uses to
achieve them.
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