Japan LDP members call for BOJ's Hayami to resign

A proposal was made at the meeting to revise the BOJ law to make it easier for the government to communicate with the central bank, he said. Under the current BOJ law, government representatives can sit in on policy-setting meetings of the independent central bank but cannot vote.

BOJ officials have insisted it had made the right decision to put an end to its zero interest rate policy in August 2000, when it said it was ending the policy because the danger of deflation had gone.Hayami said earlier on feb 14, 2001 that the decision to cut the largely symbolic discount rate as well as keeping the overnight call rate at 0.25 percent were aimed at supporting a domestic demand-led recovery.