Japanese Prime Minister Fumio Kishida said that the Bank of Japan should continue to take measures to return inflation to the target level, which is 2%. In addition, Kishida noted that the government and the Bank of Japan cooperate on economic policy issues.
Earlier, Kishida criticized the Bank of Japan's ultra-soft monetary policy, pointing out that long-term holding of interest rates at a low level negatively affects the profitability of banks.
"In order for the Japanese economy to return to steady growth, it is necessary to interact monetary and fiscal policies. Therefore, the Bank of Japan and the government should coordinate their actions," Kishida said.
Meanwhile, the Prime Minister added that future political decisions will be made with an eye to global events and the development of the situation around the pandemic.
"But now it is important for the Bank of Japan and the government to coordinate policy based on the understanding set out in the joint statement of 2013, which explains their role in bringing Japan out of deflation," Kishida said.