Deputy Bank of Japan Gov. Toshiro Muto has indicated the economy might move out of deflation later than the central bank has forecast.
"I don't mean it is impossible (to defeat deflation) in fiscal 2005," Muto said. "But it is very difficult to tell whether (the end of deflation) will be delayed and come about in fiscal 2006."
Muto made the remarks on deflation, which has hobbled the economy for years, in an interview with Kyodo News on Friday.