Democratic Party of Japan lawmakers want to revise the law governing the Bank of Japan to allow for more political input in trying to end more than a decade of deflation.
Calling themselves the “antideflation lawmakers,” the 150-member group agreed Friday to push the DPJ to propose a law that would require the central bank to adopt an inflation target and make increasing employment a policy goal. In a statement, the legislators also called for reviewing the selection process for BOJ governor, vice governor and Policy Board members.
“We’ll definitely work on this,” said Jin Matsubara, head of the group. “We want to achieve the changes through the party’s official process.”
While the proposal aligns part of the governing party with opposition politicians, Prime Minister Naoto Kan’s administration hasn’t endorsed changing the BOJ law. Economic and fiscal policy minister Banri Kaieda said before he took his post in September that he isn’t in favor of revision.
Ex-DPJ Finance Minister Hirohisa Fujii said in August that the government shouldn’t use the BOJ as its “tool.”
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