Kuroda emphasises BOJ’s new policy tweaks ‘are not an exit’

Bloomberg

Bank of Japan (BOJ) Governor Haruhiko Kuroda stressed that the bank’s latest tweaks on its bond yield control program were not the beginning of an exit of monetary easing, but a way to make it sustainable and run smoothly.
“This is definitely not a step towards an exit,” Kuroda said in a speech at an event hosted by business lobby Keidanren. “The bank will aim to achieve the price stability target in a sustainable and stable manner, accompanied by wage increases, by continuing with monetary easing under the framework of yield curve control.”
His comments came after the policy adjustments to double the upper limit of the 10-year bond yield shocked global financial markets and sparked speculation that the BOJ was taking a step towards normalising policy.
Kuroda said that the move was aimed at improving market functions after the deterioration of the nation’s bond market was observed. The governor, whose term is set to
end in April, said that the bank will maintain its “utmost support” by keeping accommodative financial conditions.
“Labour market conditions in Japan are projected to tighten further and firms’ price- and wage-setting behaviour is also likely to change,” Kuroda said. “We are approaching a critical juncture in breaking out of the prolonged period of low inflation and low growth since the collapse of the bubble economy.”