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.
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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)