Inflation must be accompanied by strong economy: Japan PM Abe

TOKYO Mon Feb 11, 2013 9:26pm EST

Related Topics

TOKYO (Reuters) - Japanese Prime Minister Shinzo Abe said on Tuesday the the central bank is responsible for achieving its new 2 percent inflation target, but that a rise in prices must be accompanied by strong economic growth driven by fiscal stimulus.

"It is possible to achieve the 2 percent inflation target with monetary policy, but fiscal stimulus is needed to support the economy as well because it would take time for wages to start rising," Abe told parliament.

Abe also said a "correction" of past sharp yen rises is driving up Japanese corporate profits, which should eventually help boost wages.

(Reporting by Leika Kihara; Editing by Shinichi Saoshiro)

FILED UNDER:
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

Find your dream retirement town

Florida? Hawaii? Reuters has teamed up with Zillow to give you the power to customize a list of your best places to retire.  Video | Full Article