July 27 (Reuters) – The leader of Japan’s main opposition Liberal Democratic Party said on Tuesday he was doubtful of the effectiveness of an inflation targeting policy.
The comment by Sadakazu Tanigaki came as Japan’s Your Party, a small opposition party that made strides in an upper house election on July 11, has vowed to submit a bill to parliament to revise the law governing the Bank of Japan.
The bill would require the government and the central bank to sign an accord on shared policy goals to end deflation, including inflation targeting. [ID:nTOE66D05R]
“We are now in deflation, so I have doubts that inflation targeting would be effective,” Tanigaki told a news conference. (Reporting by Yoko Nishikawa)