By Kaori Kaneko and Tetsushi Kajimoto
TOKYO (Reuters) – Japan’s central bank does not need to change its 2% inflation target, as reaching it will help create the kind of society the country wants with stable prices, Economy Minister Daishiro Yamagiwa said. minimizing speculation that the objective could be changed.
The government and the Bank of Japan released a joint statement in January 2013 in which the central bank, under political pressure to adopt a stronger stance against deflation, set an inflation target of 2%.
But despite years of money printing and heavy fiscal spending, Japan has struggled to raise inflation, raising speculation among some investors that officials may be forced to change the joint statement.
“At this point, there is no need to change the joint statement. GDP has expanded steadily for nine years of Abenomics,” Yamagiwa said, referring to former Prime Minister Shinzo Abe’s inflationary economic policy.
Yamagiwa may participate in Bank of Japan monetary policy reviews as a representative of the Cabinet Office. Government officials cannot vote on the bank’s decisions, but they can express their opinions and postpone votes.
(Reporting by Kaori Kaneko and Tetsushi Kajimoto)
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