Minister takes heat off BoJ, calls for Diet to do more against deflation

hiraoka

In a further show of support for the Bank of Japan's (BoJ) stance, a senior vice minister at the country's Cabinet Office on Monday said the government had to play a part in battling deflation.

Hideo Hiraoka, whose portfolio includes economic and fiscal policy, said the deflationary environment in Japan - where core inflation has hovered around -1% since the end of last year and is forecast by the ministry of finance to end 2010 around -1.4% - could not be tackled through monetary policy alone.

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