MNI BRIEF: Price Outlook Toward 2%, Probability Vital - Ueda

The Bank of Japan is unsure how it could exit its easy policy setting, but the Bank will consider explaining or disclosing an exit strategy, Governor Kazuo Ueda told the Japanese Government Monday.

Ueda said the BOJ would focus on the Board’s inflation forecast, particularly the 1.5-year estimate, when determining the strength of underlying price growth. He told lawmakers price forecasts, whether they will hit the BOJ's 2% target and whether the probability of achieving that target is increasing is important.

Previously Ueda said the underlying price trend was weak, but if it strengthens further the BOJ would move toward normalising policy without elaborating how to do that (see: MNI BRIEF: BOJ Nominee Ueda To Review Policy As Needed).

The BOJ will hold its two-day policy-setting meeting on Thursday and Friday, the first meeting under the new governor Ueda (see: MNI BOJ WATCH: Easing, Policy Forward Guidance Likely To Hold).