- BoJ’s Noguchi: Depending on data, timing of exit from easy policy could be pushed forward
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BoJ’s Noguchi: Depending on data, timing of exit from easy policy could be pushed forward
Bank of Japan (BoJ) board member Asahi Noguchi made some comments on the central bank’s potential exit strategy, noting that they remain data-dependent.
Key quotes
Positive cycle of rising wages and inflation is one important condition for BoJ’s 2% inflation target to be met.
Wages must rise about 3% for BoJ’s 2% inflation target to be met.
We're seeing early signs of change in Japan public's norm based on view prices won't rise much.
Just achieving 3% wage growth once, or a single year, won't be enough to withdraw stimulus.
Hard to say now in what order boj will tweak tools in event it were to exit easy policy.
Decision on when BoJ will roll back stimulus would be data dependent.
Looking at data, don't think now conditions will fall into place to exit easy policy any time soon.
BoJ could withdraw stimulus pre-emptively if underlying inflation perks up higher than expected.
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