TOKYO (Reuters) – Finance Minister Taro Aso said on Tuesday that monetary easing alone is not enough to end deflation and push up prices.
“The deflationary mindset that has beset Japan for such a long time won’t change suddenly. But we’ve seen some changes in the past two years, which is significant,” Aso told parliament.
“But we’re still not there yet,” he added, saying that fiscal policy and growth strategies must accompany monetary easing for Japan to make a sustained exit from deflation.
(Reporting by Leika Kihara; Editing by Chris Gallagher)