Bank of Japan Gov. Masaru Hayami reiterated Monday the need to overhaul the economy, with improvement of the now-stagnant business conditions and reform in the financial system as the two keys to revival.
At a quarterly meeting of BOJ branch managers nationwide held at the central bank's headquarters, Hayami expressed concern over the recent decline in consumer demand and in firms' production and employment offers.
"Looking at the movement of the Japanese economy these days, business conditions have worsened while pessimism has prevailed over the financial system," he said. "These are the two issues that must be dealt with immediately and all at the same time."