Japan's government is seen calling on the Bank of Japan (BOJ) to strive for achieving its 2% inflation target in a "sustainable and stable fashion,” Reuters reports on Wednesday, having seen a draft of its long-term policy outline.
Key takeaways
"The government will continue to conduct macro-economic policy flexibly … with a framework combining bold monetary policy, flexible fiscal policy and a growth strategy aimed at fueling private investment.”
"We hope the BOJ achieves its 2% inflation target in a sustainable and stable fashion, with an eye on economic, price and financial developments.”
That was a change from the wording of the current policy outline, which voices hope that the BOJ maintains an ultra-easy policy to achieve its 2% inflation target.
Market reaction
Amid a broad US dollar rebound and a cautious market mood, USD/JPY is holding its renewed upside just above 127.00.
The pair was last seen trading at 127.07, up 0.21% on the day.
