Bank of Japan Deputy Governor Kikuo Iwata said on Tuesday the central bank was conducting a study of how it could end its massive monetary stimulus in the future, but acknowledged it was still far from achieving its inflation target.
Iwata, speaking in parliament, said the BOJ did not want to publicise the exit-strategy simulation because doing so would cause market confusion given that its 2 percent price goal remains distant.
“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.
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