The new Bank of Japan governor is raising his eyebrows at the government's reported plan to inject public funds into the stock market to keep it afloat, instead preferring to let things be decided by market forces.
"Stock prices, interest rates and foreign exchange rates should all be decided by markets," Gov. Masaru Hayami said in a recent interview. "Markets are watching reality (and would not be fooled by an artificial fund injection)."
The government, according to Liberal Democratic Party sources, plans to spend investment funds from postal savings and postal life insurance to stabilize prices by March 31. The plan aims to increase latent profits for companies and financial institutions closing accounts at the end of their business year.