Author: Eamonn Sheridan
2

Bank of Japan Deputy Governor Kikuo Iwata speaking in parliament yesterday (headlines here), said the Bank was conducting a study of how it could exit its monetary stimulus

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Reuters have more info on Iwata's comments (bolding is mine):
  • "The BOJ is carrying out a simulation based on several assumptions of an exit strategy," Iwata told a financial committee in Japan's upper house, in response to a question from an opposition lawmaker.
  • He added the BOJ would refrain from making the details of the simulation public as that would cause market confusion at a time when the central bank is some way off achieving its 2 percent inflation target.
  • Izuru Kato, chief economist at Totan Research, said Iwata's comments were a direct response to a question in parliament, not a message about imminent policy intentions
  • He noted Iwata has made similar comments in the past."Iwata does not want to discuss an exit because doing so could fuel concerns about a potential loss incurred to the BOJ's expanding balance sheet, which would cost taxpayers' money eventually, and prompt public criticism against the BOJ policy," he added.



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