Kamei: BOJ must not just pay lip service but act

Mon Nov 30, 2009 7:16pm EST

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TOKYO Dec 1 (Reuters) - Japanese banking minister Shizuka Kamei, a critic of the Bank of Japan, said on Tuesday that the central bank must not just pay lip service but come up with concrete measures to combat deflation.

Kamei also said the BOJ has made a progress in its view on deflation. Governor Masaaki Shirakawa said on Monday the BOJ shared the government's view that the country was in mild deflation in the sense that price falls are likely to persist.

The government has declared Japan to be in deflation and has criticised as too optimistic the BOJ's view that annual consumer price falls will gradually ease and that another recession is unlikely. (Reporting by Noriyuki Hirata and Tetsuji Kajimoto) ((noriyuki.hirata@thomsonreuters.com; +81-3-6441-1821; Reuters Messaging: noriyuki.hirata.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))

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