Chairman Okuda's Press Conference

April 10, 2006

Following is the gist of remarks made by Hiroshi Okuda, Chairman, Keidanren at a scheduled press conference following monthly Chairman and Vice Chairmen's meeting on 10 April 2006. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.

(On inflation of long-term interest rate and BOJ policy shift)

The current interest rate is not yet out of desired range -- it takes more time to determine its effects on Japan's economy. Over-flooding of the market BOJ recently stopped and continuing zero interest rate policy have two completely different policy implications. After all, it is up to BOJ to decide on the interest rate.

(Japan's exodus from lengthy deflation)

Recent statistics figures, including consumer price index and soaring resources prices, shows that deflation is waning.

(On deciding not to nominate a candidate for 2007 House of Councilors election)

It was decided at today's Chairman and Vice Chairmen's meeting that Keidanren will not nominate a candidate for 2007 House of Councilors election. The main reason behind this decision is that each member company and member industry of Keidanren is used to having supported its own candidate, and having a Keidanren candidate caused negative impacts in the past, so it must not be repeated.

(On the long tenure of Prime Minister Koizumi)

He has served the post for long, but more structural reforms must come ? making me also to feel that his tenure is not necessarily that long.

(On Mr. Ozawa becoming party DPJ's Party President)

Mr. Ozawa should lead the party into a more integrated and intact one so that DPJ could counter LDP and ruling coalition.


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