boj governor kuroda gave a statement after the policy meeting. he said a planned increase in japan's consumption tax next april will not interfere with efforts to end deflation. >> translator: the economy will maintain its positive cycle despite an expected short-term spike and ebb in demand before and after the tax hike. and there's a high possibility of continued growth. >> kuroda said the boj's monetary policies might become less effective if the market sees the government falling behind in efforts to rein in debt. >>> a new survey suggests japanese workers are feeling a bit less optimistic. officials at the cabinet office released the results of their monthly economy watchers survey for july. they say business sentiment among employees has worsened for four months in a row. the survey asks more than 2,000 workers about their views of the economy compared with three months ago. the score for july was 52.3. that's down 0.7 points from the previous month. a reading over 50 suggests optimism about the economy. some respondents said they saw a lul

kuroda, also fired a warning shot at the abe government in his press conference. he urged cabinets not to ease up on fiscal discipline saying that a sales tax hike wouldn't stop the economy from beating its growth targets. now, essentially, what we saw today on the nikkei was quite a bit of volatility before the close. initially we fell a little bit, then came up again and then fell back into negative territory on the close. closing off by approximately 1.6%. joining us from tokyo is kenji abe. what is your reading of the bank of japan? keeping the policy unchanged, also the economic assessment unchanged too, why the volatility in today's session? >> let me comment on the boj's decision. the japanese economy has recovered and the rate has edged up as predicted in the boj's forecast. so i think it is quite natural for the boj to keep its policy unchanged. and i think mr. kuroda doesn't feel necessity to change policy at this stage, as the boj had expected. on the other hand, the market is quite volatile. one reason is it is -- i think that's a main reason why volat

yankees starter, hiroki kuroda went 5 2/3. allowed five runs, three earned on 11 hits.arren, the 25-year-old right-hander out of the university of north carolina. >> tim: tar heel. >> kenny: he was a teammate and good friend with mets ace, matt harvey. >> tim: i had read that. by the way, i think the matchup -- i think the matchup next week when detroit plays at shea stadium, matt harvey, i beg your pardon, citi field, little freudian slip there. matt harvey and max scherzer, the starters in the allstar game at citifield. >> kenny: matt scherzer, who you predicted along with joe buck on the opening telecast of the season, tigers and yankees, you said during the open that max scherzer would win the american league cy young award. >> tim: i thought that because i thought everything was coming to the and it certainly has come together for a guy who is 17-1. pitches tomorrow against the red hot kansas city royals. and then next saturday at citifield against matt harvey. that's what's scheduled to happen. that's pretty good. rarely does an allstar matchup pitch after the all

. >> governor hir oako kuroda stated that the tax hike will not interfere with the bank's goal to end deflation. shirai agrees. in fact, she urges government officials to play an indispensable role. >> in order to have the effectiveness of our monetary policy it is essential for the governments to maintain. if the investors start to have some doubt on physical credibility, this concern may be reflected in increase in long-term interest rate. and thereby undermining this recovery process of japanese economy and at the same time affecting monetary policy. so our monetary policy is really based on credibility of fiscal policies and fiscal discipline. >> all right. that was our nhk world ai uchida speaking to board member sayuri shir a, i. now let's take a look at the market figures. >>> time for a check on the weather with meteorologist sayaka mori. what can we expect later today? >> hot weather continues across most of japan. yesterday the high rose to nearly 35 degrees in tokyo. it has been three days of over 35 degrees since the weekend in tokyo. like a steam sauna. as we have been re

. >> kuroda said the boj's monetary policies might become less effective if the market sees the government falling behind in efforts to rein in debt. >>> a new survey suggests japanese workers are feeling a bit less optimistic. officials at the cabinet office released the results of their monthly economy watchers survey for july. they say business sentiment among employees has worsened for four months in a row. the survey asked more than 2,000 workers about their views of the economy compared with three months ago. the score for july was 52.3. that's down 0.7 points from the previous month, a reading over 50 suggests optimism about the economy. some respondents said they saw a lull in seefls jewales of jewel other luxury goods. sales in july were lackluster because many stores started their summer discounts earlier than usual. the survey results for future economic outlook remained unchanged at 53.6. cabinet officials say expectations for recovery remain high. workers anticipate a rise in demand ahead of a planned increase in the consumption tax. >>> here are the latest market figures. >>>

. >> at last week's conference, governor hiroko kuroda stated that the tax hike will not interfere with the bank's goal to end deflation. shirai agrees. in fact, she urges government officials to play an indispensable role. >> in order to have the effectiveness of our monetary policy it is essential for the governments to maintain credibility. if the investors start to have some doubt on fiscal credibilities, this concern may be reflected in increase in long-term interest rate. and thereby undermining this recovery process of japanese economy and at the same time affecting monetary policy. so our monetary policy is really based on credibility of fiscal policies and fiscal discipline. >>> india's leaders are celebrating a milestone in their naval history. >>> india's leaders are celebrating a milestone in the country's naval history. they say it's part of an effort to deal with china's growing presence in the indian ocean. the defense minister was in southern india to celebrate the completion of the ins hull. the 37,500-ton vessel will be able to carry up to 2,500 aircraft combat. india

. >> reporter: at last week's news conference, the governor kuroda stated that the government's planned consumption tax hike will not interfere with the bank's goal to end deflation. she agrees. in fact, she urges government officials to play an indispensable role. >> in order to have effectiveness of our monetary policy, it is essential for the governments to maintain credibility. if the investors start to have some doubt in fiscal credibility, this concern may be reflected in increase in long-term interest rate and, thereby, undermining this recovery process of japanese economy, and at the same time, effectiveness of our monetary policy. so our monetary policy, effectiveness of monetary policy is really based on credibility of fiscal policies and fiscal disciplines. >>> some people in japan spend this time of the year reflecting on the past. it's especially true for those who lived through world war ii. many are getting older and know they have little time left to tell younger generatns about their experiences. a university student from south korea is interested in listening. he visit

we've already had kuroda saying he doesn't see that as a big negative to the economic growth. but obviously looking back at the japanese economy, we have seen occasions beforehand where we've started to see the signs of recovery coming through, only to be quashed by taxes being brought in too quickly. so no doubt that abe is very much aware of that. we have at least a template on the -- out for people to see as to how they might implement it. and of course, we're not talking about anything happening till really next spring, but we want to know they're going to go down that path. again, consumption tax will be another reason for the general investment parties to be confident that government will make tough decisions. and there are a lot of tough decisions that it has to make, and this is just the first up with. >> you know, i was just talking about the pressures from market participants on abe's plans to lower the deficit, to lower the debt level. you know, it's interesting. the yield on the ten-year today was lowest in three months. so investors don't seem all that concerned b

but, of course, the policy of kuroda and the government really is to fuel expectations of higher inflationthey believe that by doing so, that will prove self-fulfilling. and when you are seeing headline inflation numbers, and you are getting people noticing the petro pump and when they pay their utility bills, prices have been rising, then certainly that is going to be helpful for the overall strategy, i would say, here at the same time, it is our view that, again, there is not really enough stimulus, even though it looks very large. still to really be generating 2% inflation on a sustainable basis because we have got to remember here that japan, of course, had so many years around 15 years of mild deflation, so to actually shift inflation rate up by that degree, by 100, by 300 basis points is quite a big challenge for them. >> julian, stay there. we'll come back to you, take a short break. india's prime minister says there is no reason to believe the economy is returning to the crisis days of 1991. the rupee continues to slide. investors, are they believing him? we'll be in new delhi next