The central bank had set that target last month, in an attempt to spur domestic demand.
BBC: Japanese economy contracts for third straight quarter
Governments have also failed to deregulate services, which would help to spur domestic demand.
ECONOMIST: The danger of delay
Nakagawa's goal is to spur domestic demand, a result that has eluded Japanese policymakers for nearly two decades.
FORBES: Spend, Baby, Spend
Many of these countries, such as China, have the fiscal and monetary capacity to take actions to spur domestic demand and to help support global growth.
WHITEHOUSE: Press Briefing
It has been a key brake on Japan's efforts to spur domestic demand as consumers tend to put off purchases in hope of getting a cheaper and better deal later on.
BBC: Shinzo Abe's challenges in reviving Japan's economy
Faced with slowing external and domestic demand, Japan's central bank has taken various steps to try and spur growth.
BBC: Japan economy contracts as global slowdown hits exports
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