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Japan PM says BOJ must set 2% medium-term inflation goal

Published on Jan 13, 2013 11:49 AM
 
Prime Minister Shinzo Abe said the Bank of Japan (BOJ) must set a 2 per cent inflation target and make it a medium-term, not long-term, goal to show markets it was determined to pursue bold monetary easing to end nearly two decades of deflation. -- PHOTO: REUTERS

TOKYO (REUTERS) - Prime Minister Shinzo Abe said the Bank of Japan (BOJ) must set a 2 per cent inflation target and make it a medium-term, not long-term, goal to show markets it was determined to pursue bold monetary easing to end nearly two decades of deflation.

The government is negotiating with the BOJ to issue a joint statement this month to make the central bank accountable for achieving 2 per cent inflation, double its current price goal.

"The BOJ basically says it sees 1 percent inflation as a loose goal. That doesn't show it's responsible to achieve it and doesn't show its strong determination," Mr Abe said told public broadcaster NHK on Sunday.

"The statement must say clearly that 2 per cent is the target. That would lead to fundamental changes" in the way it guides policy, he said.

 
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