April 17, 2017 / 8:28 AM / 3 years ago

BOJ deputy gov says internally debating tools for ending easy policy-Jiji

TOKYO, April 17 (Reuters) - The Bank of Japan has been internally debating what tools it can use when it eventually ends its unconventional monetary stimulus programme, BOJ Deputy Governor Hiroshi Nakaso was reported as saying by Jiji news agency on Monday.

“The BOJ has of course been internally discussing the means and how (a future exit from ultra-loose policy) could affect its revenues,” Nakaso told Jiji in an interview that ran on Monday.

Nakaso said for now, it was appropriate for the BOJ to focus on putting a sustained end to deflation by maintaining its massive monetary stimulus programme, according to Jiji.

When the economy improves enough to nudge inflation near its 2 percent target, however, the BOJ must provide markets with guidance on how it will adjust monetary policy, he said.

Under a new policy framework put in place in September last year, the BOJ now guides short-term interest rates at minus 0.1 percent and the 10-year government bond yield around zero percent via aggressive asset purchases.

BOJ Governor Haruhiko Kuroda has said it was too early to debate an exit strategy for the central bank’s massive stimulus with inflation still distant from its 2 percent target. (Reporting by Leika Kihara; Editing by Sam Holmes)

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