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Japan hits back at critics of its new economic policies at Davos

Published on Jan 27, 2013 12:08 AM
Mr Akira Amari, Minister for Economic Revitalisation and Minister for Economic and Fiscal Policy of Japan, attending a session of the World Economic Forum Annual Meeting (WEF) on Saturday at the Swiss resort of Davos.-- PHOTO: AFP

DAVOS (AFP) - Japan's economy minister on Saturday hit back at critics of Tokyo's new economic policies, saying they did not call into question the independence of its central bank.

Speaking at the World Economic Forum in Davos, Mr Akira Amari said the Bank of Japan had "voluntarily" decided with the government to introduce a new inflation target in a bid to boost the world's third-largest economy.

The new government in Tokyo, led by Prime Minister Shinzo Abe, has pushed the Bank of Japan (BOJ) to be more aggressive in its actions to battle nearly two decades of deflation and sluggish growth.

The BOJ on Tuesday unveiled a new inflation target of two percent and a massive programme of asset purchases to pump money into the economy, sparking accusations that central bank independence had been compromised.

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