BoJ Governor Haruhiko Kuroda warned today that “risks to Japan’s economy are tilted toward the downside” And BoJ policymakers “need to pay particular attention to protectionist moves such as Sino-U.S. trade friction.”
Kuroda also warned that “raising interest rates now to create policy space for future economic downturns may risk delaying achievement of our inflation target.”
Also, it’s premature to reveal the exit strategy for the ultra loose monetary policy. Kuroda said “we need to debate an exit strategy and explain it to markets but only when inflation approaches our target.”
