Officials say Japan emerges from 15 years of stagnant growth

Описание: (22 Dec 2005)

1. Wide of business forum, Governor of the Bank of Japan, Toshihiko Fukui, walks to podium UPSOUND applause
2. SOUNDBITE (Japanese) Toshihiko Fukui, Bank of Japan governor:
"In the perspective where the sign of sustainable economic recovery is becoming evident and positive consumption index is being stabilised, the chance of changing the exceptional framework of the quantitative easing policy is rising toward the next fiscal year. On that occasion, we will assess the economic conditions again and confirm that the consumption index in comparison to the previous year will be sustained above 0 percent. We need such conditions to be filled (before changing the policy)."
3. Wide cutaway of audience
4. Okuda walks to podium
5. SOUNDBITE (Japanese) Hiroshi Okuda, President of the Japanese Business Federation:
"The rising stock price stimulates the mind of business people as well as consumers and pushes up the infrastructure investment and consumption activity. Yet, we, as corporate executives, should not be bloated with pride and straighten up ourselves with afterthought of bubble economy on how we deal with corporate management."
6. Cutaway of audience
7. Japanese Prime Minister, Junichiro Koizumi walks to podium UPSOUND applause
8. SOUNDBITE (Japanese) Junichiro Koizumi, Japanese Prime Minister:
"Thanks to the strong support from business sectors, we started to see the outcome of the reform. We are still on our way but, we are determined to put it on the right track with the help of you people."
9. Wide of Koizumi finishing speech, shaking hands Fukui and Okuda UPSOUND applause

STORYLINE:

The Bank of Japan Governor Toshihiko Fukui on Thursday renewed his resolve to lift Japan's ultra-loose monetary policy in the first half of next year, using a slightly stronger choice of words regarding the timing of a policy change.

Speaking at a business forum in Tokyo Fukui said: "The chance of changing the exceptional framework of the quantitative easing policy is rising toward next fiscal year."

At the same time, Fukui also said the central bank will stick to the current monetary policy based on its commitment regarding the consumer price index.

In the latest speech the phrasing seems to indicate the bank is a step closer to winding down the quantitative monetary easing policy by saying such a chance "is rising" instead of "is likely to rise," used in previous speeches.

Japanese Prime Minister, Junichiro Koizumi, and the President of the Japanese Business Federation, Hiroshi Okuda, also spoke at the event.

Koizumi thanked "strong support" from the business sectors as Japan emerges from some 15 years of stagnant growth held back by deflation - or continually falling prices - weak consumption and declining corporate profits.

As company earnings recover and prices start to stabilise, investors have lifted Tokyo stocks to five-year highs.

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