Thursday, February 28, 2013
DJ: Econ Min Says Japan Remains Committed To Fiscal Reform Goals
TOKYO--Japan's economy minister Thursday stressed the importance of beating deflation for economic growth, and reiterated hopes for the Bank of Japan to implement monetary easing to accomplishing this.
"Monetary policy is extremely important because if deflation persists, the effects of fiscal steps and the growth strategy being undertaken by the government will be limited," Economy Minister Akira Amari said during a speech to parliament.
The government and the BOJ in January agreed to a 2% inflation target that the government says is the responsibility of the central bank.
In his speech, Mr. Amari said "we strongly hope the BOJ will implement bold monetary easing steps to achieve the price target at the earliest possible time."
The Cabinet of Prime Minister Shinzo Abe compiled an aggressive fiscal stimulus package earlier this year to prop up the economy, although it came with more issuance of government bonds.
That will likely worsen Japan's already severe fiscal conditions, at least in the short term. But Mr. Amari stressed that the government remains committed to meeting its goal of improving to deficit.
"We will aim to achieve cutting the fiscal 2010 deficit by half by fiscal 2015, and realize a surplus by fiscal 2020," Mr. Amari said.