[h=3]By ALEXANDER MARTIN[/h]TOKYO—A day after voters gave him a second chance to lead the nation, incoming Japanese Prime Minister Shinzo Abe wasted no time in putting pressure on the central bank to adopt more aggressive policy easing measures to fight deflation.
Mr. Abe told reporters at a news conference Monday that he wants the Bank of Japan to take into account the fact that the public supported his views on monetary policy when it holds its monthly two-day meeting on Dec. 19-20.
Zuma PressIncoming Japanese Prime Minister Shinzo Abe at a press conference in Tokyo Monday where he put pressure on the central bank to adopt more aggressive policy easing measures.
"Throughout this election, I've repeatedly insisted that I would like to forge a policy accord with the Bank of Japan to set a 2% inflation target," Mr. Abe said, adding that he expected the central bank to "exercise good judgment, accepting the results of the election" when they meet on Wednesday and Thursday.
While Mr. Abe said he was still considering who to appoint to Cabinet posts, he said he planned to instruct its members to work toward forging an accord with the BOJ once his Cabinet is inaugurated.
He also said that a large-scale extra budget was necessary to get the economy out of deflation, adding that he would take into account the economy's supply-demand gap in deciding its size.
The government has said the supply-demand gap in the economy stands at an annual 15 trillion yen ($179.62 billion).
The comments come following Sunday's vote that marked a remarkable return to power for both Mr. Abe and his Liberal Democratic Party, which had ruled the nation for over half a century before being ousted from power three years ago by the Democratic Party of Japan.
Daiwa Securities senior economist Maiko Noguchi said there were risks included if all of what Mr. Abe has said were realized. "But there's going to have to be a lot of discussion, with the BOJ and within the parliament, so it may be too early to tell," she said. "In terms of his comments today, well, he's just going to make those comments."
She said that the BOJ might find it easier to act this week at its policy meeting and enlarge the amount of longer-term JGBs bought under it asset-purchase program, though it would mostly be a reaction to Japan's weak tankan corporate sentiment survey and action in Europe and the U.S.
On the campaign trail, Mr. Abe had promised to lift the nation out of deflation through bold monetary easing, and to take a harder line against China in territorial disputes while boosting the nation's military spending.
He also stressed the need to improve Japan-U.S. relations, and said Monday that he was eyeing a visit to the U.S. either in late January or in February after U.S. President Barack Obama's inauguration.
During the news conference, he said for his new party and Cabinet lineup he was looking for "people with the ability to break through the crisis," in the economy and foreign policy.
Mr. Abe said he asked Shigeru Ishiba, the party's second-in-command, to continue with his current job as LDP secretary general as the party eyes an upper house election due next July, where it hopes to win a majority of seats.
While Sunday's election gave the LDP and its smaller ally New Komeito a total 325 seats—more than the two thirds majority of the 480-seat chamber that allows the lower house to override the opposition controlled upper house—the two parties still lack a majority in the 242-seat upper house.
Mr. Abe told reporters earlier in the morning that he would be meeting New Komeito President Natsuo Yamaguchi on Tuesday as the two parties prepare to form a coalition government.
Mr. Abe is expected to launch his new Cabinet on Dec. 26 at the earliest. A regular Diet session is likely to be convened at the end of January, with the aim of passing the fiscal 2013 budget in early May.
—Eleanor Warnock contributed to this article.
Mr. Abe told reporters at a news conference Monday that he wants the Bank of Japan to take into account the fact that the public supported his views on monetary policy when it holds its monthly two-day meeting on Dec. 19-20.
Zuma PressIncoming Japanese Prime Minister Shinzo Abe at a press conference in Tokyo Monday where he put pressure on the central bank to adopt more aggressive policy easing measures.
"Throughout this election, I've repeatedly insisted that I would like to forge a policy accord with the Bank of Japan to set a 2% inflation target," Mr. Abe said, adding that he expected the central bank to "exercise good judgment, accepting the results of the election" when they meet on Wednesday and Thursday.
While Mr. Abe said he was still considering who to appoint to Cabinet posts, he said he planned to instruct its members to work toward forging an accord with the BOJ once his Cabinet is inaugurated.
He also said that a large-scale extra budget was necessary to get the economy out of deflation, adding that he would take into account the economy's supply-demand gap in deciding its size.
The government has said the supply-demand gap in the economy stands at an annual 15 trillion yen ($179.62 billion).
The comments come following Sunday's vote that marked a remarkable return to power for both Mr. Abe and his Liberal Democratic Party, which had ruled the nation for over half a century before being ousted from power three years ago by the Democratic Party of Japan.
Daiwa Securities senior economist Maiko Noguchi said there were risks included if all of what Mr. Abe has said were realized. "But there's going to have to be a lot of discussion, with the BOJ and within the parliament, so it may be too early to tell," she said. "In terms of his comments today, well, he's just going to make those comments."
She said that the BOJ might find it easier to act this week at its policy meeting and enlarge the amount of longer-term JGBs bought under it asset-purchase program, though it would mostly be a reaction to Japan's weak tankan corporate sentiment survey and action in Europe and the U.S.
On the campaign trail, Mr. Abe had promised to lift the nation out of deflation through bold monetary easing, and to take a harder line against China in territorial disputes while boosting the nation's military spending.
He also stressed the need to improve Japan-U.S. relations, and said Monday that he was eyeing a visit to the U.S. either in late January or in February after U.S. President Barack Obama's inauguration.
During the news conference, he said for his new party and Cabinet lineup he was looking for "people with the ability to break through the crisis," in the economy and foreign policy.
Mr. Abe said he asked Shigeru Ishiba, the party's second-in-command, to continue with his current job as LDP secretary general as the party eyes an upper house election due next July, where it hopes to win a majority of seats.
While Sunday's election gave the LDP and its smaller ally New Komeito a total 325 seats—more than the two thirds majority of the 480-seat chamber that allows the lower house to override the opposition controlled upper house—the two parties still lack a majority in the 242-seat upper house.
Mr. Abe told reporters earlier in the morning that he would be meeting New Komeito President Natsuo Yamaguchi on Tuesday as the two parties prepare to form a coalition government.
Mr. Abe is expected to launch his new Cabinet on Dec. 26 at the earliest. A regular Diet session is likely to be convened at the end of January, with the aim of passing the fiscal 2013 budget in early May.
—Eleanor Warnock contributed to this article.