Further comments by BOJ's Kuroda as he speaks in parliament
- Politics won't get in the way when BOJ needs to exit easing policy
- Two key factors when BOJ exits easing policy are how to shrink balance sheet and raising short-term rates
- Cannot say how and at what pace to shrink balance sheet or raise rates
- BOJ and government need to continue to work together
- BOJ is internally discussing exit
- BOJ is doing internal debate on exit strategy
- Will not communicate it with market until policy normalisation timing draws near
Kuroda again sounding optimistic that the BOJ will reach a point where they can debate exiting their easing policies by fiscal year 2019. I for one, doubt that.
That line on internal exit strategy discussion, sends the yen higher on the day. USD/JPY falls to 105.80 from 106.05.
Hmm, I think Kuroda needs to realise that there is a fine line between sounding confident and reassuring, and just plain miscommunicating. This feels like the Davos incident and the incident early in March - where he eventually walked back on his comments.
