BoJ Deputy Governor Masayoshi Amamiya told the parliament that the central bank has already shifted to a “sustainable monetary easing framework”. Thus, it is “appropriate to maintain current policy given underlying price moves.”
But he also noted that BoJ has “sufficient operational tools” to achieve a smooth exit from ultra-loose monetary policy.
“The difficult challenge for the BOJ is to determine whether conditions have fallen in place to exit, and how to communicate (its policy intention) to the market,” Amamiya added.
