More from Kuroda: Debating exit now would cause confusion

More from Kuroda: Debating exit now would cause confusion

Further comments by BOJ’s Kuroda as he speaks in parliament

  • Politics won’t get in the way when BOJ needs to exit easing policy
  • Two key factors when BOJ exits easing policy are how to shrink balance sheet and raising short-term rates
  • Cannot say how and at what pace to shrink balance sheet or raise rates
  • BOJ and government need to continue to work together
  • BOJ is internally discussing exit
  • BOJ is doing internal debate on exit strategy
  • Will not communicate it with market until policy normalisation timing draws near
Kuroda again sounding optimistic that the BOJ will reach a point where they can debate exiting their easing policies by fiscal year 2019. I for one,
doubt that.

That line on internal exit strategy discussion, sends the yen higher on the day. USD/JPY falls to 105.80 from 106.05.

Hmm, I think Kuroda needs to realise that there is a fine line between sounding confident and reassuring, and just plain miscommunicating. This feels like the Davos incident and the
incident early in March – where he eventually walked back on his comments.
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