Therefore, in order to win domestic and overseas confidence in the Japanese financial markets and to maintain and improve the international competitiveness of these markets, it is essential that the central bank system is able to win domestic and overseas confidence, and that the market environment is improved through such efforts as the “Big Bang” reform package.
A potential source of additional demand discussed by the Committee included government spending being higher than currently projected, in view of the current strength of the Crown balance sheet. This view was balanced by the impact of any increase in government investment being delayed, for example due to timing of the implementation of new initiatives and current capacity constraints in the construction sector.