Bank of Japan Governor Kuroda
- When achivement of 2% inflation target accompanied by wage hikes comes into sight, boj can debate an exit policy from easy policy, head toward policy normalisation
- We are not at stage where we can debate an exit from easy policy
- Raising interest rates now would hurt economy still in midst of recovering from pandemic's impact so undesirable
- I am aware of the impact weak yen is having on households via higher import prices
- Merits of BOJ’s current policy outweighing costs, but aware of need to be mindful about costs of prolonged easing
- Pace of raising japan's negative interest rate will be among key factors when BOJ debates exit strategy
- Another factor is how to adjust BOJ’s huge balance sheet
Earlier from Kuroda (more comments on the yen at this link):
BOJ Gov. Kuroda says Japanese CPI is likely to fall back under 2% next fiscal year
