TOKYO: Japan hopes the central bank keeps its inflation target of 2 per cent and works closely with it on economic policy, Prime Minister Fumio Kishida said on Thursday, before becoming prime minister in October, that there was a strain on bank profits due to the strain on the Bank of Japan's BOJ.
Kishida said that Japan's economy can restore healthy growth by ensuring the BOJ's monetary policy and the government's fiscal policy work hand in hand.
It is important for the two sides to communicate and coordinate closely. He said that future policy decisions could be influenced by developments in the global economy and the COVID 19 pandemic.
It's important for the two sides to coordinate policy based on an understanding outlined in a joint statement of 2013, Kishida said.
The document clarified the role the government and central bank would play in pulling Japan out of deflation while specifying the inflation target for the first time.
In November, Japanese policymakers including the central bank governor, Haruhiko Kuroda, reaffirmed the commitment made in the joint statement.