Bank of Japan Gov. Masaru Hayami urged the government Thursday to initiate concrete structural reforms to stamp out deflation, reflecting the central bank's concern about the slow pace of reforms as Diet proceedings stall amid political scandals.
"Ending deflation will be possible only through the return of the economy to sustainable economic growth," Hayami said in his opening address at a quarterly BOJ branch manager meeting. "To achieve this, pushing forward concrete structural reforms in taxation and deregulation and stimulating private-sector demand are absolutely necessary."
Hayami said the economy continues to deteriorate, although exports and inventories are now a weaker drag on the economy.