Bank of Japan warned, fight deflation

JAPAN - The Bank of Japan (BoJ) should cooperate with a push by the government to halt deflation, chief cabinet secretary Yasuo Fukuda said today as central bank board members convened for a two-day policy meeting.

But analysts doubted the central bank would adopt any effective new monetary tools, despite increasing government pressure to do so.

"Overcoming the current deflationary situation is the most important issue. Therefore, the government and the BoJ need to share a common view on that,"

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