Bank of Japan Gov. Masaru Hayami indicated Monday that the bank is close to ending its "zero-interest-rate" policy, citing brighter prospects for an economic recovery and diminishing deflationary risks.
In a speech at the central bank's quarterly meeting of branch managers, Hayami said the economy is gradually recovering, with an increase in corporate capital spending amid improved earnings and the receding possibility of a deflationary spiral.
"Given the above conditions, the Japanese economy is entering a situation where deflationary concerns are fading, which has been a prerequisite for lifting the 'zero-interest-rate' policy," Hayami said.