"You can only buy so much time with monetary policies"
- Yuici Kodama, Chief Economist at Meiji Yasuda Life Insurance Co.
On a seasonally adjusted monthly basis Japan's tertiary industry activity index unexpectedly remained flat in April compared to a revised 0.2% drop a month earlier, according to the Ministry of Economy, Trade and Industry. The index stood at 99.7, missing expectations for a 0.2% gain following a 0.9% decline in March. Industries, which experienced a boost in activity included finance, scientific research, health care, communications and utilities, while such industries like retail trade, transportation, amusement services, real estate, accommodations and learning support saw a decline in activity.
Meanwhile, leading economist remained divided over whether Prime Minister Shinzo Abe's plan would bring desired results, but all agreed that there is a need for deregulation and new growth strategies. It is believed that Abe should take bold steps on structural reforms including introduction of corporate tax cuts and major deregulation in the medical, educational, agricultural and other industries.
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