The Organization for Economic Cooperation and Development urged the Bank of Japan on Wednesday to establish a new framework -- including inflation objectives -- so clearer signals can be given to the markets about how it will respond to changes in the economy.
"The challenge will be to set a new framework, which will signpost how monetary policy will react as the economy exits from the serious post-bubble crisis," the OECD said in its annual economic survey of Japan, which includes both assessments and recommendations.
"It would be important for the bank to give more concise form to its inflation objectives in terms of specifying what inflation rate or range is considered appropriate," the Paris-based organization of industrial countries said.
The OECD, however, said the objectives do not have to be inflation targets as such.