A member of the Bank of Japan's (BoJ) policy board, Yoshihisa Morimoto, in August discussed steps policy-makers needed to take to strengthen Japan's growth potential and overcome deflation.

Delivering a speech to business leaders in Ishikawa, Morimoto said insufficient demand was a "key factor" underlying inflation. "It is essential to capture global demand, including demand from emerging economies, and to tap latent demand both at home and abroad," he said. To achieve the increase, he suggested