A panel of academics and business executives on Monday urged the Bank of Japan to make its 2% inflation target a long-term goal instead of one that must be met as soon as possible, in light of the rising cost of prolonged monetary easing.
The re-defining of the price target must be made in a new policy accord between the government and the central bank that would replace the one crafted in 2013, the panel said.
In the proposal, the panel also called for the need to have interest rates rise more in line with economic fundamentals, and normalize Japan's bond market function.