Japan in battle to calm fears
Wednesday 08 April 1998
In an appearance before a parliamentary committee, Masaru Hayami, the bank's governor, acknowledged the Japanese economy was stagnant, but insisted that "one cannot say it has reached a recession".
Stock and currency prices have risen over the last two days, after sharp falls last week and dire predictions of imminent economic collapse, by the chairman of Sony, Norio Ohga.
But the vice-president of Toyota, Kanji Kurioka, insisted that the situation had been exaggerated by the media, and expressed faith in a 16 trillion yen economic stimulus plan. "I think there are some very solid elements of consumer demand," he said. "If the government's 16 trillion yen is taken positively by the public, and if banks don't just hold on to their money and begin lending to companies, Japan's car market will recover from June or July."
The details package have so far remained vague, and scepticism has focused on the amount of fresh spending which it will actually include. But yesterday the Nikkei average closed at 15,978.72, up 272.73 points, or 1.74 per cent, after further hints of a package of tax cuts, perhaps as large as 8 trillion yen, to be announced by Mr Hashimoto today or tomorrow.
Yutaka Yamaguchi, the Bank of Japan's deputy governor said the bank might further reduce interest rates, already close to zero, to avoid deflation.
"There is still room to influence market interest rates," he told the finance committee of the lower house of the Japanese Diet.
- 1 Man on naked bike ride gets ejected after becoming aroused
- 4 Ann Summers survey reveals the UK's favourite sex position
- 5 Ayyan Ali: Pakistan's top model now appears in the courtroom rather than on the catwalk
Man on naked bike ride gets ejected after becoming aroused
Caitlyn Jenner's mother Ester thought her daughter, formerly known as Bruce Jenner, had transitioned for money
Charles Kennedy 1959-2015: A gifted, compassionate politician whose career was cut short by the 'demon drink' - latest news
Charles Kennedy dead: A guy once asked the Lib Dem leader who his favourite Muppet was and his letter response was wonderful
Jaden Smith wears gender fluid dress to high school prom with Hunger Games actress
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Why this year's general election was the most unfair in Britain's history
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...