TOKYO, April 17 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)