Japanese government considers amending joint statement with BOJ
© Reuters. FILE PHOTO: A man wearing a protective mask walks past the Bank of Japan headquarters amid the coronavirus disease (COVID-19) outbreak in Tokyo, Japan, May 22, 2020. REUTERS/Kim Kyung-Hoon/File Photo
TOKYO (Reuters) – Japan’s government will consider revising next year a 2013 joint statement with the Bank of Japan (BOJ) pledging the central bank will hit its 2% inflation target “as soon as possible.” as possible,” sources told Reuters.
They said the amendment, if implemented, would be implemented after the appointment of a new BOJ governor in April.
Four government and ruling party officials with knowledge of the matter said there is no consensus within the government on whether such a review is needed and, if so, what changes could be made. can be implemented, will largely depend on the views of the new BOJ governor.
However, some officials in Prime Minister Fumio Kishida’s administration want to revise a statement dating back decades, which focuses on steps to beat deflation – an objective that has become out of sync with recent increase in inflation, they said.
“Since we’re going to have a new BOJ governor, there’s likely to be a new statement,” one of the government officials said. “But there is no decision yet on what the new form will look like,” the source said. A second official echoed that view.
A third official said: “If the government finds it necessary to review the statement to better reflect the administration’s goals, a review may be warranted.”
All sources spoke on condition of anonymity, as they were not authorized to speak publicly.
Discussions about a possible revision and the government’s choice of the BOJ’s next governor is likely to intensify next month, the sources said.
Kyodo news agency reported on Saturday that the government is set to revise the joint statement to make the BOJ’s inflation target a more flexible one, with a certain time limit.