TOKYO: Japan’s government is set to revise a decade-old accord with the Bank of Japan (BOJ) stating the central bank will aim to achieve its 2% inflation target “at the earliest possible time”, Kyodo news agency reported on Saturday, citing government sources.

In the first review of the 2013 joint agreement, the government will make the price goal more flexible, Kyodo said.

Prime Minister Fumio Kishida is expected to work out details with the next BOJ governor, who will succeed Haruhiko Kuroda in April, Kyodo said.

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The revision could lead the BOJ to tweak its monetary easing as the side effects of its ultra-low interest rate policy – most notably the yen’s sharp depreciation against other major currencies - have become more evident and pose a challenge for the Kishida administration, Kyodo said.

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