BOJ Deputy Governor Running Simulation on Exit Strategies

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.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza