Chairman Mitarai's comment at his press conference

( Current situation of the Japanese economy )

Wild exchange rate fluctuations have bad influence on business activities. The Japanese stock price has been underestimated given her economic fundamentals. Under these circumstances, the Japanese government has worked well. They passed the supplementary budget and started to work out a financial bailout package. It was a quick and timely action.
To recover the economy immediately, the following policy measures should be included in the package and executed without delay:

1. Income tax cut for child-raising people as well as middle and low-income workers
2. Expansion and extension of the current mortgage tax breaks as well as the introduction of new tax credits for people purchasing houses with no loan
3. Expansion of tax incentives for R&D investment as well as energy saving activities by companies
4. Extension of the security tax breaks
5. Introduction of tax exemption on dividends from subsidiaries abroad
6. Rescue plan for medium and small businesses in need of working capital

Political vacuum is unthinkable in this serious economic situation. Financial resources for the policy implementation should be used temporarily and flexibly. It goes without saying that the fiscal target decided in 2006 must be maintained. The two things can live with. We are in an emergency now.

( Current value accounting )

It is worth discussing whether the current value accounting system should be maintained. The Japanese government should take necessary actions together with the US and Europe when the time comes.

( Foreign exchange market intervention )

Foreign exchange market intervention to stop the yen getting further stronger can happen any time. Joint intervention with the US and Europe is hard to do because the dollar is also getting stronger against almost all major currencies except the yen. Japan can step into the market alone without knowing the effect.