MNI BRIEF: BOJ To Discuss Exit If 2% Target Sustained - Kuroda
BOJ Governor Haruhiko Kuroda said it's too early to start talking about a change in policy.
Bank of Japan Governor Haruhiko Kuroda said on Thursday that policymakers will discuss an exit strategy from easy policy and communicate it to market participants if they see the achievement of 2% price target in a stable and sustainable manner accompanied with wage hikes.
He said it was premature to concretely show how to proceed with an exit strategy, saying that now wasn't the time for the BOJ to discuss an exit from its easy policy, which includes yield curve control. (See MNI POLICY: Next BOJ Governor Won't Act Before Wages Data)
Kuroda also said that the BOJ continues to closely watch the side-effects of easy policy, although the bank had taken some measures to alleviate the side-effects.
As for foreign exchange rate moves, he repeated that the recent weakness in the yen has been rapid and one-sided, and it was undesirable for Japan’s economy.
Kuroda told lawmakers that the BOJ is carefully watching developments in currency markets and their impact on economy and prices, while remaining in close contact with the government on forex moves.