Japan to set 2% inflation target: Reports

TOKYO (AFP) - The Bank of Japan and the nation's new government will jointly set a two per cent inflation target in a bid to fight deflation, news reports said on Monday.

The two sides are to finalise a joint statement on monetary measures in time for the central bank's upcoming policy meeting scheduled for Jan 21 and 22, the Asahi Shimbun reported.

The planned statement is expected to stipulate the two per cent inflation target as a "mid-term" goal so that the central bank's commitment to beating deflation will be clarified, the daily said.

But Kyodo News, quoting government sources, said that their statement would not take the form of a binding accord and no deadline would be set for achieving the target.