Economic Revitalization Minister Minoru Jonai (城内実) said at a press conference after the Cabinet meeting that the declaration that deflation has been overcome must be judged carefully. As attention focuses on the relationship between the BOJ's assessment of whether its 2% target has been achieved and a government declaration, he avoided making a clear commitment on reviewing the joint statement.
Minoru Jonai (城内実) indicated that the merits of declaring an end to deflation must be judged carefully. He said the timing of the government's assessment had not yet been determined and reiterated the government's stance of assessing the consistency between the BOJ's decision and its own declaration.
Market observers expect the BOJ to determine whether its 2% inflation target has been achieved at next week's monetary policy meeting, but no specific proposal was presented regarding the timing or conditions for a government declaration.
The joint statement was issued in January 2013 and calls for continued monetary easing to achieve the BOJ's 2% target. Jonai avoided commenting on any review that would accompany a decision to make the declaration.
In assessing whether deflation has been overcome, the government pointed to a comprehensive range of factors, including indicators such as the consumer price index and the GDP deflator, as well as the risk of a return to deflation. The government emphasized the independence of its declaration from the BOJ's achievement of its target.