The Governor of the Bank of Japan, Haruhiko Kuroda, has made some comments on the exit of his ultra-easy monetary policy during his appearance on Tuesday.
Additional comments
The BoJ has acknowledged the upside inflationary risks.
Salaries are likely to rise in next year’s wage negotiationsreflecting the underlying increase in inflation and raising inflation expectations in the medium and long term.
Increased labor productivity is likely to lead to higher real wage growth in the long run.
Even if wages rise by 3%, the BoJ will maintain its current easing policy until inflation reaches 2%.
It is premature to reveal options on how to dispose of the BoJ ETF holdings.
If the BoJ’s price target is met, the central bank’s board of directors is likely to debate the fate of the holdings as part of its ultra-loose policy exit strategy.
When the BoJ sells ETFs, it will do so in a way that minimizes the BoJ’s losses and avoids disrupting the markets.
Source: Fx Street
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