BOJ’s Harada: BOJ to withdraw stimulus when 2 % inflation target is in sight

Comments from Bank of Japan (BOJ) monetary policy board member Yutaka Harada are crossing the wires once again, this time on the central bank’s stimulus exit strategy, when the 2% target is reached.

Key Headlines:

There should not be any side effects of a QE exit

Even if BOJ had losses at exit, it would be temporary

BOJ to withdraw stimulus when program succeeds and 2 percent inflation target is in sight

Hard to say now at what pace withdrawal will be as that will depend on momentum at the time

Maintaining current stimulus policy would be sufficient to achieve 2% inflation goal

BOJ's recent pace of bond buying is largely in line with its pledge to increase its bond holdings at annual pace of 80TRL Yen

BOJ could hikes rates first, cut bond buying first or do both when time to exit easy policy comes

If BOJ were to raise rates in future it will end negative rates and raise rates it pays on excess reserves financial institutions park with BOJ