DPJ Seeks Bank of Japan Inflation Targets in Election Platform

http://www.businessweek.com/news/2010-04-20/dpj-seeks-bank-of-japan-inflation-targets-in-election-platform.html

DPJ lawmaker Akihiro Ohata, who heads the group compiling the manifesto, said he agreed with colleagues who called for a stronger commitment from the central bank to fight persistent falling prices. Finance Minister Naoto Kan yesterday said the government and the BOJ should work toward pushing inflation as high as 2 percent.

“The government will present numerical targets for beating deflation and prepare an environment so that the Bank of Japan can autonomously and boldly take monetary policies and secure coordination between the two,” the draft said. The party’s “manifesto” will be completed in late May before parliamentary upper house elections slated for July.

A group of 130 DPJ lawmakers last week proposed an inflation target of more than 2 percent and for the yen to weaken to around 120 per dollar.