Provisional translation

Press Conference by Shoichi Nakagawa, Minister of Finance and Minister for Financial Services

(Excerpt)

December 19, 2008

[Opening Remarks by Minister Nakagawa]

At a ministerial meeting on economic measures held from shortly past 8 a.m. today, "emergency measures to defend people’s daily lives" were approved after a briefing by Minister (of Economy, Trade and Industry) Yosano. In addition, the “Fiscal 2009 Economic Outlook and Basic Stance for Economic and Fiscal Management” was approved. The real growth rate is estimated at 0.0% and the nominal growth rate at 0.1% for fiscal 2009. Public demand is estimated to grow 0.6%, indicating that government measures, including the emergency measures, will support GDP. In relation to this, as a paper distributed to you yesterday showed and as I said at the end of yesterday’s press conference, the ruling parties adopted a plan to allocate 20 trillion yen to the purchase of stocks, which was added to the total sum. Also, we compiled a timetable of emergency measures and economic measures, including employment-related measures and measures to facilitate financing, protect the people’s lives and support local economies. We will ensure that these measures will be fully communicated and implemented. After this meeting, a meeting of the Regional Revitalization Headquarter was held. Although I attended it, I did not make any particular statements.

At a cabinet meeting, the "emergency measures to defend people’s daily lives" and the “Fiscal 2009 Economic Outlook and Basic Stance for Economic and Fiscal Management,” which I mentioned, were approved after a briefing by Minister Yosano. I also explained the financial size of the economic measures and provided an oral comparison with the measures taken by other developed countries. The Prime Minister instructed us to make efforts to explain to the people such matters as the size of the housing tax reduction in an easy-to-understand manner. I do not have any further statements to make.

[Questions and Answers]

Q.

I would like to repeat a question that I asked yesterday. Today, the BOJ (Bank of Japan) is holding a Monetary Policy Meeting, and an additional interest rate cut has apparently been factored into the market. What are you expecting?

A.

Needless to say, the BOJ conducts monetary policy management as an independent entity. While it is stipulated under law that the BOJ should maintain close communications with the government, the decision-making itself is left to the BOJ. As I have already said, I believe that the government and the BOJ share a recognition of the current economic and financial situation, so I am looking forward to seeing what decision the BOJ will make at today’s Monetary Policy Meeting.

(End)