Masaaki Shirakawa said that the inflation target of 1% is most suitable for Japan

Bank of Japan Governor Masaaki Shirakawa Masaaki Shirakawa, said Friday (2/17), Japan’s deflation coming to an end, but the distance from the target of 1% is still a long way, if not improve the economic growth momentum will not be able to resist deflation. 
Prior to the Bank of Japan released the minutes of the monetary policy meeting.


Masaaki Shirakawa said that the inflation target of 1% is most suitable for Japan, will each view, if the target of 30 no 2% would bring uncertainty. Japan’s deflation coming to an end, but from the 1% rate of inflation targets, there is still a long way.

Shirakawa Fang Ming, only rising prices and economic growth of businesses and households, if you can not improve the economic growth momentum, it is impossible to resist deflation; the Bank of Japan in the past policy of quantitative easing to stimulate the economy and did not play too much, Therefore, monetary policy should focus on long-term economic and price outlook.

Masaaki Shirakawa said the yen appreciates sharply negative impact on Japan’s economy, the Bank of Japan will continue to implement the favorable monetary easing policy, focusing on long-term price target, but not the currency of the debt as the purpose of purchase bonds, rely on this to meet the budget requirements will result in long-term interest rates rising.

Masaaki Shirakawa, is published in the Bank of Japan policy meeting a few hours after the remarks. Friday morning, the Bank of Japan announced the monetary policy minutes of 123-24 days. The minutes show that many members of the appreciation of the yen is highly concerned about the majority of the members suggested that the inflation target is set to 1% in order to support economic growth in Japan.


via [ Forex News ]