Published February 11, 2013
TOKYO – 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)