Japanese consumer prices in 2012 for the fourth consecutive year down, show that the central bank faces a challenge, to combat deflation governor Friday reiterated that positive loose monetary policy plan.
The bank, the bank of Japan governor BaiChuan FangMing (Masaaki Shirakawa) tells a reporter, this requires a lot of work to achieve 2% of the inflation target, announced earlier this week, aim to break a long time spell price decline is considered to be frustrating business investment and delay recovery the world's third largest economy.
, not including fresh food, consumer price index in 2012 fell 0.1%, an increase of pressure, the central bank progress, to revitalize the economy. Class a consumer price index fell 0.2%, December, in line with market expectations.
The central bank has pledged to do what I can, in order to meet the new prime minister, Shinzo Abe, (Shinzo Abe), has obtained the economic recession of the worst-hit areas economic recovery since taking office, a month before his first task announced under the pressure of inflation target.
At the same time, BaiChuan warned that the central bank's role, is also in order to ensure stability and to prevent the financial bubble - more and more worry, in those skeptical, large-scale economic stimulus spending and heavy loose monetary policy will do the trick, after twenty years of a recession.
"Bubble economy a huge price," BaiChuan said. "They reasons are varied, but they keep regular," he said.
In the monetary authorities of all major economies economic stimulus mode, a lot of money into the world market. Japan's nikkei 225 stock index rose 2.9%, or 305.78 points, to 10926.60 last Friday. Since the beginning of time have risen nearly 10%.
BaiChuan also stressed that must improve fiscal discipline.
"Long-term interest rates will jump, and weaken the effect of monetary easing," he said, if the central bank to buy government bonds, in order to achieve its target inflation seems to be not careful. Japan's public debt is already more than two times the economies of scale and rapid rise.
Although the central bank agreed to inflation benchmark, and through the open asset purchase "infinite" loose monetary policy, the government must play its own part, and promoting reform, need to restore the economic growth and improve the competitiveness of Japan, "he said.
Japan's monetary easing weaken its currency - another to improve Japanese products more competitive prices of overseas manufacturing, shinzo Abe, goal.
The yen trading at $90.50 on last Friday, tail plate, after touch two and a half a year low earlier in the day.
Finance minister Taro Aso (Taro Aso), at the same time, to avoid the criticism, Japan is manipulating its currency - told some of its trade partners, say they fear that the weaker yen could cause competitive devaluation criticism.
Japan's monetary easing purpose is to blow deflation, the Japanese yen is revised in a long period of appreciation, he said.



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