Hirohide Yamaguchi, deputy governor of the Bank of Japan, on Wednesday said the long-term downward trend in economic growth was one cause of deep-rooted deflation in Japan.

At a meeting with business leaders in Nagano, Yamaguchi said: "Deflation is not desirable, and, if the current low growth rate continues, it will become difficult to maintain fiscal conditions and social security in the future. Therefore, strengthening medium- to long-term growth potential was a major challenge to Japan's