Sunday, Feb 1, 2015Sunday, Feb 1, 2015

Japan PM Noda contradicts challenger Abe on BOJ

Published on Nov 16, 2012 6:54 PM

TOKYO (REUTERS) - Prime Minister Yoshihiko Noda said on Friday that it would cause problems over the independence of the Bank of Japan (BOJ) if the government set the central bank's goals and details of its policy steps.

He said it was seen as common sense globally to maintain the independence of central banks, including that of Japan.

But he added: "There's no doubt the government needs to cooperate closely with the Bank of Japan to beat deflation and boost the economy."

His comments contrast with those of opposition leader Shinzo Abe, who this week called on the BOJ to push interest rates to zero or below zero to spur lending, prompting the yen to slide to a six-month low.

If you are not a subscriber, you can get instant, unlimited access here