Bank of Japan Governor Toshihiko Fukui said Wednesday that financial markets are largely stable and that it is necessary to watch them calmly. "I don't think that markets are that unstable," Fukui told reporters at the Prime Minister's residence after attending a meeting of cabinet ministers there. "It is better to watch markets calmly." Fukui also said that even though the central bank has no intention to declare an end to deflation, there are no gaps between the government and the BOJ in their views on the nation's price trends. "The basic trend of prices is firm, and on that point, I don't think there are any differences" in the assessment of prices of the central bank and the government, he said. In its July economic report, Japan's Cabinet Office dropped the word "deflation" from part of its monthly economic report for the first time in more than five years, a move toward formally declaring an end to the country's nagging problem of falling prices