Takanaka: BOJ, gov must work together on deflation

The Japanese government and central bank need to work together to end deflation, Economic and Fiscal Policy Minister Heizo Takenaka said Monday 17 January after a cabinet meeting in Tokyo.

``Deflation hasn't ended yet,'' Takenaka said. ``The government and the Bank of Japan must continue to work together.''

He was speaking to reporters at a press conference in Tokyo after Cabinet met on Monday.

``The economy should pull out of its stagnation from the middle of the year and turn into a recovery

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