Japan must not rely solely on BoJ to revive economy: Finance Minister

(From Reuters)

TOKYO: Japan’s government must not rely solely on the Bank of Japan to boost economic growth and defeat deflation, following the central bank’s decision to reboot its monetary policy framework, Finance Minister Taro Aso said on Friday.

The BOJ on Wednesday shifted to targeting interest rates on Japanese government bonds as the focus of its massive monetary easing program, dropping its explicit target of increasing base money.

Japan's finance minister Taro Aso arrives at Prime Minister Shinzo Abe's official residence in Tokyo, Japan, August 3, 2016. REUTERS/Kim Kyung-Hoon

Japan’s finance minister Taro Aso arrives at Prime Minister Shinzo Abe’s official residence in Tokyo, Japan, August 3, 2016. REUTERS/Kim Kyung-Hoon

“I understand that this was adopted as a necessary step to achieve the 2% inflation target as quickly as possible based on a joint statement between the government and the BOJ,” Aso told reporters after a cabinet meeting.

Aso said the government must tackle structural reform and carry out its plans to spur the economy. The BOJ’s new framework won’t have an immediate impact on government bond markets, he added.

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