Japan PM wants higher inflation

The Bank of Japan must target inflation of two per cent in the medium term, new Prime Minister Shinzo Abe said over the weekend. Abe wants the Bank to do more to bring an end to the country’s long and debilitating spell of deflation. “The BOJ basically says it sees one per cent inflation as a loose goal. That doesn’t show it is responsible to achieve it and does not show its strong determination,” Abe told public broadcaster NHK yesterday. The BOJ has long been running a quantitative easing programme, and last week the new government approved a ¥15.4 trillion (£107bn) stimulus package in a new effort to boost economic growth.