TOKYO — The Bank of Japan (BOJ) should not necessarily stick to its 2% inflation target, the head of the country's banking industry lobby said on Thursday, highlighting Japanese banks' struggle to grow earnings under massive easing monetary policy. The remark came after the International Monetary Fund (IMF) said in its Article 4 policy proposal last year the BOJ should consider increasing policy flexibility by introducing an inflation range target. Makoto Takashima, chairman of the Japanese Bankers Association, welcomed the proposal by the IMF and said it raised a good question about how monetary policy should be operated. "I think the BOJ should not necessarily stick to 2% inflation target as the structure of our society and economy has been changing," Takashima told reporters at a monthly news conference.

Source: International New York Times February 13, 2020 07:50 UTC