Japan to commit to end deflation through bold policies

TOKYO Japan's government will commit to pulling the economy out of deflation through bold monetary policy, flexible fiscal policy and a growth strategy, according to a draft outline of its long-term economic policy platform, obtained by Reuters on Friday.

The government has said it hopes the Bank of Japan will achieve its 2 percent inflation target in a stable, sustained fashion accompanied by wage growth.

With measures to boost private investment for innovation and other structural measures, the government will strive to eradicate Japan's long-held deflationary mindset and create a perception among the general public that Japan will not return to deflation.

The government's economic policymaking platform, which serves as a guideline for the government's long-term policymaking, will be finalised on June 16.

It will be the first to be compiled since the BOJ Governor Kazuo Ueda took up the post in April.

The government's focus on putting a sustainable end to deflation may underscore its hope that the BOJ will continue supporting the delicate economic recovery with extremely-loose monetary policy.