Japan PM: hard to be as optimistic as BOJ on economy

Published: 30 Oct 2009 01:06:07 PST

TOKYO, Oct 30 - Japanese Prime Minister Yukio Hatoyama said the central bank's decision on Friday to end corporate funding support steps seemed to reflect the view that the economy is recovering smoothly, but it was hard to be optimistic about economic conditions.

"It is hard to think the Japanese economy will keep getting better," he told reporters.

The central bank voted to begin withdrawing from credit markets on Friday, saying it will scrap all of its key funding support programmes by March.

The bank extended a low-interest loans scheme by three months, but voted 7-1 to end that lending in March and also chose to end less-used funding measures -- buying of corporate bonds and commercial paper -- in December.