22 October 2001, 09:44 BoJ's Hayami says uncertainty over Japanese economy is increasing
TOKYO (AFX-ASIA) - Bank of Japan governor Masaru Hayami said
uncertainty over the future course of the Japanese economy is
increasing following the Sept 11 terrorist attacks in the US.
"Economic adjustments in our nation, as was evidenced by the
spill-over of the (adverse) impact of the sharp decline of production
to the labour and income conditions, are getting severe," the governor
said in a prepared statement to the opening of a quarterly meeting of
BoJ's branch managers.
"In addition to such development, uncertainty over the future
course of the economy is increasing further following the terrorist
attacks in the US."
The governor said while it is "unavoidable" for domestic demand to
undergo adjustments, the "concern is growing that further decline in
exports may further pressure the economy."
The governor said BoJ will "pay attention to the risk" that
fluctuations in the domestic and offshore capital markets may have on
economic activity through the deterioration of business and consumer
sentiment.
"To prevent sustained price declines and pave the ground for
sustained economic growth, the Bank of Japan will continue to make our
utmost efforts," he said.
Hayami said the resolution of the problem of bad debts is
"indispensable", adding that it is also necessary to proceed with
structural reforms in order to stimulate private demand.
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