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Bank of Japan governor says economy slowing
Monday, January 14, 2008
TOKYO (Thomson Financial) - Bank of Japan governor Toshihiko Fukui has reiterated that the Japanese economy is slowing due to a decrease in housing investment but will continue its gradual recovery.
"The Japanese economy is slowing for the time being but it is expected to continue its moderate expansion subsequently," the governor said in a speech at the quarterly meeting of Bank of Japan branch managers.
"The Bank of Japan continues to contribute to the realization of sustainable growth under stable prices, through implementation of appropriate monetary policy with a close examination of the economic and price situation," he said.
Fukui also said the impact from the subprime crisis on Japan's financial institutions was greater than initially expected.
But he said the impact on Japan's financial institutions was smaller than on those of US and Europe and does not see the issue currently having a serious effect on the stability of Japan's financial system.
The governor said there is uncertainty in the global economy, given rising international commodity prices, including oil prices, and the downside risk to the US economy.
"There is a necessity that we continue to closely monitor the impact of the development of international financial and capital markets, the global economy and the international commodity market."
(1 US dollar = 108.00 yen)
