The rare joint statement Tuesday by the government and the Bank of Japan to showcase their alliance in fighting deflation meant to display unity, but it also highlighted the lack of trust in each other's commitments.
The mutual suspicion, reinforced by decades of weak growth, appears to be one of the biggest obstacles they must overcome to ensure effective structural reforms and monetary easing that would help the economy return to a sustainable growth path with stable prices.
"It is significant that the government and the BOJ confirmed they will make every effort to beat deflation as soon as possible," economic and fiscal policy minister Seiji Maehara said at a news conference after he attended a BOJ policy meeting in which the central bank decided to further ease monetary policy to boost the economy.