Japan economic council urges flexible BOJ policy

TOKYO - Prime Minister Junichiro Koizumi's economic policy council urged the Bank of Japan on 11 June to carry out a flexible monetary easing policy if needed while the economy is in an adjustment phase.

Saying the economy's adjustment process would intensify over the next two to three years as the government pushes through structural economic reforms, the council said monetary policy would play a key role in offsetting economic pain.

"During the adjustment period which accompanies deflationary