31 October 2001, 08:53 BOJ to maintain easy monetary policy until deflationary trend reverses
HONG KONG (AFX-ASIA) - Bank of Japan executive director Masayuki
Matsushima said the Japanese central bank is fully committed to
maintaining an easy monetary policy until the deflationary trend shows
signs of reversing.
He said it is very difficult to move out of the current
deflationary trend but the central bank was doing its best given the
"very limited scope to manoeuvre monetary policy."
He said the central bank aims to stabilize consumer goods prices.
He said several factors contributing to the current deflationary
trend are weak demand, higher import penetration as well as
technological advancement and the rationalisation of Japan's
distribution system.
Matsushima was speaking on the sidelines of the World Economic
Forum East Asia summit.
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