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To make such a change would seem to weaken the bank's commitment to ending deflation.
At its policy meeting Tuesday, the Bank of Japan's board showed a more explicit commitment to ending deflation, voting to set consumer inflation at an annual rate of 1 percent as its price goal, at least for the time being.
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Has this lessened my commitment to ending it?
"Your commitment to ending the current arrangements is very welcome.
Mr. Koizumi has also pledged to end deflation in Japan by 2005.
He said the government and the central bank would work together to end deflation.
While the economy has been expanding for two years, Japan is still struggling to end deflation.
The best way to restore fiscal health is to end deflation.
In contrast, by saying there is nothing it can do to end deflation, the Bank of Japan merely reinforces the expectation that deflation will persist.
For all its desire to end deflation, the government still appears concerned about the damage inflation may bring.
Prime Minister Yukio Hatoyama said Friday that Japan needed to make an all-out effort to end deflation.
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