Hayami - Absolutely wrong to say BOJ OKs deflation

JAPAN - Bank of Japan Governor Masaru Hayami 29 August shot down suggestions the central bank is tolerating Japan's severe deflationary environment, Kyodo News reported.

"It's a complete misunderstanding" to think that the BOJ accepts deflation, Hayami said at a meeting with business leaders in Osaka, according to Kyodo.

The key to overcoming deflation is "triggering sustainable demand," the governor said. "Monetary policy alone" is not enough in itself to defeat deflation, Hayami said.

He added