Chairman Mitarai's comment at his press conference

October 22, 2007

Following is the gist of remarks made by Chairman Mitarai at his Press Conference. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.

( The Japanese economy )

Sluggish consumer spending and weak housing investment are major negative factors causing slowdown of the economic expansion. There is no concern about a collapse of the economic recovery of Japan. The economy is still on an expansionary course with strong exports and business capital investment continuing robust. Labor market is favorable for job seekers and personal consumption is anticipated to increase gradually. The Japanese economy is getting back its strength. It is just a matter of time.

( The US economy )

The turmoil in the financial market, high oil prices and weak housing investment has negative impact on business of the USA. It is just a period of adjustment. Business performances are still good and capital investment remains strong over there. The US economy will turn to a recovery again by the middle of the next year.

( Road related taxes for wider purposes )

When national revenues exceed state expenses for a long time, tax payers must have smaller burden. It is only natural. The issues on the road-linked tax revenues should be discussed in national debate on sweeping reforms of tax system as a whole. Car users, or the tax payers never be satisfied without it.


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