MNI POLICY: BOJ Kuroda: To Outline Exit Strategy At Right Time

     TOKYO (MNI) - Bank of Japan Governor Haruhiko Kuroda said Monday that the

bank will show how to implement an exit strategy from easy policy at an

appropriate time after hitting the 2% price stability target.

     Kuroda told lawmakers, "It is important for the BOJ to make an exit

strategy and to show it to markets in order to maintain the stability of

financial markets."

     As for an exit strategy, Kuroda said that the BOJ needs to raise interest

rates and shrink its balance sheet, which has grown in the wake of aggressive

easy policy.

     When asked about the timing of hitting the 2% price target, Kuroda said

that it is difficult to achieve the 2% price target in the forecast period to

fiscal 2020 ending March 31, 2021.

     However, "momentum toward achieving the 2% price target is maintained and

the BOJ will patiently maintain the easy policy" to achieve the 2% price target,

Kuroda said.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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