BoJ Governor Haruhiko Kuroda told the parliament, “it’s premature to lay out details of an exit strategy. But one major factor of debate will be the pace of increase in the BoJ’s short-term policy rate, now set at -0.1%.”
“Another factor would be how to adjust its balance sheet,” he said, noting that other major central banks adopted the sequence of interest rate hike first, then shrinking balance sheet.
“It’s extremely important for the BOJ to underpin the economy with ultra-loose monetary policy and ensure the necessary environment is falling into place for companies to hike wages,” Kuroda emphasized.
