The Bank of Japan on Tuesday adopted a 2 percent inflation target, caving in to pressure from Prime Minister Shinzo Abe, while calling for closer coordination and implementation of bold measures to fight deflation in a joint statement released with the government.
In showing its resolve to follow Abe's ultra-loose monetary policies, the central bank also introduced an "open-ended" asset purchase plan.
"This is an epoch-making accord in terms of boldly revising the country's monetary policies," Abe said after the agreement was reached following a two-day meeting of the BOJ Policy Board.