BOJ deputy says deflation end may be delayed

Deputy Bank of Japan Governor Toshiro Muto has indicated in an interview that the Japanese economy may move out of deflation later than the central bank has forecasted.

''I don't mean it is impossible (to defeat deflation) in fiscal 2005,'' Muto said. ''But it is very difficult to tell whether (the end of deflation) will be delayed and come about in fiscal 2006.''

Muto made the remarks on deflation, which has hobbled the world's second-largest economy for years, in an interview with Kyodo News