December 25, 2012 / 5:11 AM / 5 years ago

Japan incoming coalition agrees on 2 pct inflation target

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TOKYO, Dec 25 (Reuters) - Incoming Japanese Prime Minister Shinzo Abe and his coalition partner agreed on Tuesday to set an inflation target of 2 percent and compile a large stimulus budget to help the economy return to growth and overcome deflation, the head of the coalition partner said on Tuesday.

Natsuo Yamaguchi, leader of the New Komeito party, also told reporters the two sides did not talk about revising the Bank of Japan law, but that he would discuss the issue with Abe if necessary.

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