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Fukui on the state of Japan's economy

In a speech given on 2 September Toshihiko Fukui of the Bank of Japan said that the positive impact of the current easy monetary policy on economic activity is strengthening as the economy recovers. As the economic recovery raises the expected rate of return on new investment with interest rates remaining low, firms will become more inclined to undertake investment.

"Eventually, we must return to the conventional monetary policy of using short-term interest rates as an operating target, from the

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