Japan Maehara: govt wants BOJ to take steps to cause CPI rise
TOKYO Oct 5 (Reuters) - Japanese Economics Minister Seiji Maehara said he will attend the Bank of Japan's monetary policy meeting on Friday with the stance that the government wants the central bank to take steps to meet its goal of price stability.
Maehara, speaking to reporters, said he was not trying to put the entire responsibility for escaping deflation onto the central bank and that the government has a role to play with its economic growth strategy and fiscal spending.
The BOJ is expected to keep monetary policy unchanged at a two-day meeting ending on Friday even as weakening manufacturing activity in Asia continues to cloud the outlook. The central bank will likely want to take more time to review the effect of the BOJ's policy loosening just last month.
The decision by Maehara, who has suggested the BOJ needs to do more to end deflation, to attend the meeting has fuelled speculation among investors that the central bank will be under more pressure to ease in the future.
The BOJ's understanding of price stability is a 1 percent rise in consumer prices. Maehara has repeatedly said the BOJ should be held accountable for achieving this goal.
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