On October 4, 1999, Mr. Takashi Imai, Chairman of Keidanren, held a press conference. The followings are his major statements at the conference (tentative translation).
The Tankan survey (of business sentiment released Oct. 4) clearly shows that Japanese business executives see our economy heading towards an recovery. However, the economic growth recorded from January this year is not self-sustained because corporate capital investment is still weak. Further fiscal and financial stimulus are needed.
Economic and monetary policies should be balanced to prevent a further rise of the yen. A rise in long-term interest rates is another concern because fresh bond issuances are required to finance coming fiscal spending. Issuances of bonds should be more diversified to prevent a rise in long-term rates.