Vice Finance Minister Toshiro Muto said Thursday that the Bank of Japan does not need to restore a "zero-interest-rate" policy, despite calls by some politicians for a further easing of monetary policy.
"We are not insisting that the zero-rate policy be restored," Muto told a regular press conference. "We are concerned that brisk corporate capital investment has not stimulated personal consumption, but that does not mean we should ask (the BOJ) to return to the zero-rate policy."
Some politicians, dissatisfied with the BOJ's decision to end the policy, have urged a further easing of its policy to support the economy.
Despite pressure to the contrary from the government, the BOJ ended the policy in August, saying deflationary concerns had been dispelled.
Commenting on recent plunges in Tokyo stocks, a Liberal Democratic Party politician said last month that it had been a mistake for the BOJ to abandon the policy.
Former Economic Planning Agency chief Taichi Sakaiya also said earlier this month that there are growing signs of deflation.
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