Bank of Japan Gov. Masaru Hayami said Thursday that the central bank will continue to study inflation targeting but that it has qualms about achieving price levels at the expense of prudence.
Hayami made his case in a written reply to a group of Liberal Democratic party members who are calling for a legal revision that would obligate the BOJ to commit to a certain inflation rate and take all necessary steps to achieve it. Under consideration is a clause that would allow the Diet to strip the governor of his post if the target is not met.
"We consider inflation targeting a means to heighten transparency of monetary policy and a subject that warrants further study," Hayami said in the statement.