MNI BRIEF:BOJ's Kuroda Says Premature To Discuss Exit Strategy

Bank of Japan Governor Haruhiko Kuroda said on Friday that it was premature to discuss an exit strategy from easy monetary policy that has been a feature of his tenure.

“Generally speaking, when the BOJ faces an exit, how to adjust policy interest rates and how to reduce the balance sheet…that’s two important issues,” Kuroda told reporters.

Kuroda, however, didn’t elaborate, saying that the pace of the exit and its sequence will depend on economic and price conditions at the time.

He also said major firms are positively considering raising wages on the back of tightness of labor market conditions and price developments. “The possibility is high that wages will be raised higher than before. But I wouldn’t comment further as wage negotiations are underway now,” Kuroda said.