Bank of Japan Governor Haruhiko Kuroda testifying before the Lower House Financial Affairs Committee on monetary policy

Earlier comments here

Also:

  • Currently does not see bubble in asset markets
  • Monetary policy can have an effect on FX and stocks
  • Yen has corrected from excessive strength after Lehman
  • Not appropriate to concretely discuss exit strategy now – adds that redemption of JGBs held by the BOJ, an increase in the floor market rate could be among options for the exit from QE, but which steps to take would depend on the market and economic conditions at the time (see footnote to this post)
  • Don’t think yen is excessively weak or in bubble now

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Kuroda’s ongoing comments are continued here

Footnote:

  • Kuroda is saying that policy options to scale back aggressive monetary easing include:
  • Redeeming outstanding JGBs that the BOJ is holding
  • Conducting fund-draining money-market operations
  • Raising the interest rate on excess reserves banks keep at the BOJ
  • He also adds that choosing which measures to use depends on the economic and financial market conditions at the time, and that is too early to discuss these now