SUMITA SAYS LITTLE ROOM FOR BANK TO EASE POLICY

  Bank of Japan governor Satoshi Sumita
  said there is little room left for the central bank to further
  ease its credit policy as interest rates levels are now
  approaching their lower limit.
      "The government should instead seek ways of making the best
  use of its fiscal policy," he told a press conference.
      His remarks were concerned with a comprehensive economic
  stimulative package the government plans to adopt in the coming
  days.
      At the recent talks among the six major industrialised
  nations in Paris, Japan promised to work out a comprehensive
  economic package to boost domestic demand, which in turn would
  help increase its imports and reduce its trade surplus.
      Sumita also said the economy will show a gradual upturn in
  the second half of the year if the yen remains stable.
      He said there is caution in the foreign exchange market
  against a further rise of the yen and mark and this explains
  the recent stability in the currency markets. Conflicting
  economic indicators from the U.S. Have also been dampening
  market activity, he added.
  

