ID :
46495
Thu, 02/19/2009 - 19:23
Auther :
Shortlink :
https://oananews.org//node/46495
The shortlink copeid
BOJ`s Shirakawa foresees `severe` drop in GDP in Jan.-June period
TOKYO, Feb. 19 Kyodo - Bank of Japan Governor Masaaki Shirakawa said Thursday he is anticipating a
''severe'' drop in Japan's gross domestic product data for the first half of
2009 on the back of the deepening global economic slump.
''I envisage severe figures in the January-March and April-June quarters,''
Shirakawa said at a press conference after the central bank decided to
implement further measures aimed at easing tight corporate financing, including
an ''extremely unusual'' step of purchasing outright up to 1 trillion yen
(around $10.7 billion) worth of corporate bonds from financial institutions.
Earlier this week, Japanese government data showed that real GDP in the three
months through December shrank an annualized 12.7 percent, the fastest rate of
contraction in nearly 35 years.
Shirakawa also told reporters that Shoichi Nakagawa made a ''momentous
decision'' in choosing to resign as the country's finance minister on Tuesday
over his erratic behavior at a weekend Group of Seven press conference in Rome.
The G-7 news conference was held jointly with Shirakawa.
Nakagawa came under fire over his behavior at the press conference, at which he
appeared to be drunk and misstated Japan's policy interest rate.
Shirakawa said Nakagawa appeared to be feeling ill at the press conference in
Rome but added that Nakagawa had sounded ''assured'' at the G-7 meeting. At the
international meeting, Nakagawa explained Japan's measures to tackle the
weakening economy and called for cooperation with other countries to stabilize
the flagging economic and financial situations around the world, Shirakawa
said.
Asked if he had been under the influence of alcohol, Shirakawa said, ''I cannot
drink much (alcohol) and drank some juice that day.''
The central bank chief made the comments after the BOJ's Policy Board concluded
a two-day meeting through Thursday. The central bank decided to maintain its
key interest rate at 0.1 percent for the second consecutive month while
extending part of its existing emergency policy measures designed to facilitate
corporate financing amid the worldwide credit crunch.
''The functioning of the corporate bond market is currently significantly
impaired,'' Shirakawa said, adding that such a situation leads to stringent
corporate financing.
The BOJ is aiming to restore functionality and to facilitate corporate
financing through the outright purchase of corporate bonds, he said.
''Our country's economy remains in a severe state, '' Shirakawa said.
The prospects for the Japanese economy are ''extremely uncertain,'' he added,
noting that the outlook largely depends on global economic trends.
Asked about the possibility of lowering the BOJ's key interest rate to zero,
Shirakawa said the bank's policy-making board did not take up the topic at its
latest policy meeting.
==Kyodo
''severe'' drop in Japan's gross domestic product data for the first half of
2009 on the back of the deepening global economic slump.
''I envisage severe figures in the January-March and April-June quarters,''
Shirakawa said at a press conference after the central bank decided to
implement further measures aimed at easing tight corporate financing, including
an ''extremely unusual'' step of purchasing outright up to 1 trillion yen
(around $10.7 billion) worth of corporate bonds from financial institutions.
Earlier this week, Japanese government data showed that real GDP in the three
months through December shrank an annualized 12.7 percent, the fastest rate of
contraction in nearly 35 years.
Shirakawa also told reporters that Shoichi Nakagawa made a ''momentous
decision'' in choosing to resign as the country's finance minister on Tuesday
over his erratic behavior at a weekend Group of Seven press conference in Rome.
The G-7 news conference was held jointly with Shirakawa.
Nakagawa came under fire over his behavior at the press conference, at which he
appeared to be drunk and misstated Japan's policy interest rate.
Shirakawa said Nakagawa appeared to be feeling ill at the press conference in
Rome but added that Nakagawa had sounded ''assured'' at the G-7 meeting. At the
international meeting, Nakagawa explained Japan's measures to tackle the
weakening economy and called for cooperation with other countries to stabilize
the flagging economic and financial situations around the world, Shirakawa
said.
Asked if he had been under the influence of alcohol, Shirakawa said, ''I cannot
drink much (alcohol) and drank some juice that day.''
The central bank chief made the comments after the BOJ's Policy Board concluded
a two-day meeting through Thursday. The central bank decided to maintain its
key interest rate at 0.1 percent for the second consecutive month while
extending part of its existing emergency policy measures designed to facilitate
corporate financing amid the worldwide credit crunch.
''The functioning of the corporate bond market is currently significantly
impaired,'' Shirakawa said, adding that such a situation leads to stringent
corporate financing.
The BOJ is aiming to restore functionality and to facilitate corporate
financing through the outright purchase of corporate bonds, he said.
''Our country's economy remains in a severe state, '' Shirakawa said.
The prospects for the Japanese economy are ''extremely uncertain,'' he added,
noting that the outlook largely depends on global economic trends.
Asked about the possibility of lowering the BOJ's key interest rate to zero,
Shirakawa said the bank's policy-making board did not take up the topic at its
latest policy meeting.
==Kyodo
