In an appearance at the lower house financial committee of parliament today, BoJ Governor Kazuo Ueda stated that there is no immediate need to review a joint statement issued with the government about a decade ago. This statement, which is not legally binding, outlines the roles that the government and the BOJ should each assume in order to lift Japan out of deflation.
“We are going to approach meeting the 2% inflation target by keeping to monetary easing, although it may take time.” He added that “the joint statement is appropriate and I don’t see any immediate need to revise the target.” Ueda’s remarks point to a commitment to maintaining monetary easing in pursuit of the inflation target, while also urging companies to drive economic growth through higher wages and sustained inflation.
In an earlier session, Ueda clarified that the BoJ’s Japanese Government Bond (JGB) purchases are managed in the context of achieving the 2% price stability target, and not to assist the government in acquiring financial resources.
