Shinzo Abe was chief Cabinet secretary in 2006 when he backed the Bank of Japan's interest rate hike, a move that the prime minister-in-waiting, who is growing increasingly intolerant of the nation's chronic deflation, now says was a mistake.
Abe, whose Liberal Democratic Party swept to victory in Sunday's Lower House election, is expected to be named prime minister next week, a post he held from 2006 to 2007. With his new mandate, he is expected to try to reshape the BOJ next year when the terms of its governor and two deputies expire.
Abe told BOJ Gov. Masaaki Shirakawa on Tuesday that he wants the bank to set a 2 percent inflation target. The BOJ is forecast to boost its asset purchases as soon as Thursday.