Japan's new government and central bank reaffirmed their commitment to a major 2013 pledge to work together to achieve 2% inflation, dampening market expectations of an early departure from the stimulus. 

In a meeting with government ministers, BoJ Governor Haruhiko Kuroda reaffirmed the pledge, according to a statement released by the BoJ after Kuroda met with Finance Minister Shunichi Suzuki and Economy Minister Daishiro Yamagiwa. 

The ministers and the governor of the central bank met for the first time since the election on Sunday. It suggests that Prime Minister Fumio Kishida wants to reassure investors, policymakers, and analysts that there would be no quick changes to economic policy while the government works to boost a sluggish pandemic recovery.

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"They wanted to send a statement from the start that Kishida's focus is on the economy," said Eiji Kitada, head economist at Hamagin Research Institute. He described the meeting as a "ceremony" meant to reduce speculation and demonstrate that while the faces have changed, the policies have not.

"The government won't admit it, but the BoJ's easing is crucial since it keeps borrowing costs for issuing bonds extremely low," Kitada said.

Long-term yield rates are kept around zero by the BoJ's yield curve management, which is beneficial for a government with the greatest public debt load in the industrialised world. This month, the government has promised to put together a significant economic package.

While Kishida has stated that he will carry on the policies of outgoing Prime Minister Shinzo Abe, the new premier has shown no intention of pressuring the BoJ to ease further to meet its inflation target.

In 2013, the BoJ and Suzuki and Yamagiwa's predecessors issued a unified statement, stating Japan's 2% inflation target. It has been cited by Kuroda as a motivation for his determination to meet the goal.