Japan’s government is set to revise a decade-old joint statement with the Bank of Japan (BOJ) that commits the central bank to achieve its 2% inflation “at the earliest date possible,” Kyodo news agency reported on Saturday, citing government sources.
With the revision, Prime Minister Fumio Kishida will aim at making the BOJ’s 2% inflation target a more flexible goal with room for allowance, Kyodo reported.
Kishida will discuss details on how to revise the statement with a new BOJ governor, who will succeed incumbent Haruhiko Kuroda when his term ends in April, according to Kyodo.
Specifically, the new statement could remove the phrase “at the earliest date possible,” or change the language to clarify that the 2% inflation target is a medium- to long-term goal rather than one that needs to be achieved quickly, Kyodo said.
The revision could lead the BOJ to tweak its ultra-loose policy to address the cost of prolonged easing, such as the yen’s sharp fall that inflates the cost of imports, Kyodo said.
Under strong pressure by then Prime Minister Shinzo Abe to take bolder steps to beat deflation, the BOJ signed the joint statement with the government in 2013 and committed itself to achieve its 2% inflation target “at the earliest date possible.”
This report’s information was first seen on Zawya.com; to read more, click this link.
You must be logged in to post a comment.