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.
“Wages including basic salary rise are important. But the economic mechanism behind price rises and the outlook for economic and prices conditions are important,” Kuroda said. He said incoming governor Kazuo Ueda, who will take office in April, will carefully watch the economy, prices and financial markets, and he hopes Ueda will manage monetary policy in an appropriate manner.