JAPAN'S MIYAZAWA: WON'T ASK GREENSPAN TO LOWER US RATES
By Sumie Kawakami Fulford
ÿÿÿÿÿTOKYO (MktNews) - Japanese Finance Minister Kiichi Miyazawa said Wednesday that he will not ask U.S. Federal Reserve Chairman Alan Greenspan to lower U.S. interest rates at their meeting Friday, but he conceded the topic might come up "over the dinner table."
ÿÿÿÿÿMiyazawa will meet with Greenspan and Treasury Secretary Robert Rubin on Friday in San Francisco.
ÿÿÿÿÿSpeaking at a regular press briefing, Miyazawa said he can't promise that Japan will lower its interest rates any time soon either.
ÿÿÿÿÿ"It is up to the Bank of Japan," he said when asked if Japan would lower its rates.
ÿÿÿÿÿMiyazawa said the U.S. should welcome recent efforts by Japan to stabilize its financial system.
ÿÿÿÿÿ"Of course, the enactment of those actions will take time, but several measures came about quite quickly," he said.
ÿÿÿÿÿMiyazawa said he isn't overly concerned by recent sharp moves in stock markets in the U.S. and Japan.
ÿÿÿÿÿ"Volatilities are within the range of Greenspan's warning and there is no need to be panicky," he said, alluding to the Fed chairman's warning of "irrational exuberance" in markets.
ÿÿÿÿÿAsked whether he has any proposals to counter suggestions by opposition parties in Japan that public funds not be used to help revive the country's banking system, Miyazawa said: "It is obvious that nothing effective will come out unless we use lots of money."
ÿÿÿÿÿAsked about Malaysia's decision to impose capital controls this week, Miyazawa said he hasn't studied Malaysia's actions in any detail but that he prefers capital to remain unencumbered by such actions.
ÿÿÿÿÿ"Of course, there should be basic mechanisms but I personally believe the markets should be free."
06:49 EDT 09/02
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