BOJ governor Kuroda still at it in his confirmation hearing at the lower house
- Will adjust policy to achieve target if needed
- Will also need to consider further easing if necessary
- Not saying that the BOJ will never change its yield targets
- Inappropriate to talk about stimulus exit now given the distance to the 2% price target
- Will communicate exit with the market when the time is right
- Will maintain current policy for now as the momentum is good
- Hard to say whether it's appropriate for central banks to try and guide markets to certain direction via communication
- The right communication will be to say what we think
- It's inappropriate to disclose simulations on how BOJ's exit from easing policy could affect its balance sheet
- There are various potential scenarios for exit, focus will be on inflation
Not gonna lie, but his speech feels all over the place. But hasn't offered anything new so far that we know of. I'll provide a summary later, this feels like it could go on for quite a while.
