Reaching the newly adopted 2 percent inflation target will require a "substantial effort," including government policies that will boost economic growth, Bank of Japan Gov. Masaaki Shirakawa said Friday.

Pointing out that the economy has averaged about 0.5 percent inflation over the last 20 years, Shirakawa said the BOJ can't single-handedly tackle the new quest through its monetary policies.

"Bold deregulation measures should be put forward" by the government, Shirakawa said during a speech at the Japan National Press Club in Tokyo, adding the Liberal Democratic Party-led administration also must stimulate economic growth.