Trade chief Shinji Sato voiced skepticism July 18 over continuation of the current low interest rates.
"We have yet to see a full-scale recovery in corporate activities," Sato said at a news conference. He suggested that ongoing low interest rates might be doing more harm than good to the economy. He said he believes a complete economic recovery will be achieved only if new businesses start developing as a result of structural changes.
"In the meantime," he said, "the current monetary policy is apparently discouraging consumer spending, especially with those who live on pension savings. Small and medium-size companies are also suffering from sagging consumption levels."