The Straits Times
Published on Dec 23, 2012

Japan's Abe heaps pressure on BOJ to set 2% inflation target


TOKYO (REUTERS) - Japan's next premier Shinzo Abe renewed pressure on the central bank to adopt a 2 per cent inflation target, saying he will try to revise a law guaranteeing its independence if his demand is not met.

He also said he will pick someone who agrees with his views on the need for bolder monetary easing to succeed Bank of Japan (BOJ) Governor Masaaki Shirakawa when his term expires in April next year.

"At this month's policy meeting, the BOJ said it would examine (setting an inflation target) at its next meeting" in January, Mr Abe said on television on Sunday.

"If it doesn't, we'll revise the BOJ Law and set up a policy accord with the central bank to agree on an inflation target. We may also seek to have the BOJ held accountable for job growth."