Friday, February 22, 2013
DJ: Amari Says Market Looking At If BOJ Is Serious About Credit Easing
TOKYO--Japan's economy minister on Friday stressed the importance of monetary policy in overcoming deflation, saying that the market is looking at whether the Bank of Japan is serious about its new inflation target.
"The market is evaluating how much resolve the central bank has to continue its monetary expansion to accomplish an appropriate inflation goal," Akira Amari said at a regular press conference.
Inflation expectations will never grow "as long as the BOJ maintains an attitude of 'deflation is not our problem,'" he said.
It is important to stop businesses from hoarding cash, he said, while acknowledging that inflation fears alone are not enough to push them into spending, and called for further deregulation to create opportunities for business investments.