Bank of Japan (BOJ) Governor Haruhiko Kuroda said Friday it is too early to discuss the central bank's specific exit strategy from aggressive easing it launched last April.
"The Japanese economy has been steadily moving along a path to achieving the two percent price stability target, but it is not fully out of deflation," Kuroda said at the Lower House Financial Affairs committee.
"It is premature to debate specific exit strategy. To terminate the current easing program (after achieving the price target), the BOJ will carefully examine economic and financial conditions at that time, and decide on what kinds of measures should be taken," Kuroda said, indicating that the central bank will continue with the quantitative and qualitative monetary easing. Last April, the BOJ launched a massive monetary easing program to end deflation that has lasted for nearly 15 years and achieve the two percent inflation target in fiscal 2015.
The measures center on doubling the monetary base and purchases of government bonds in two years as well as to purchase more risky financial assets, including exchange-traded funds and real estate investment trusts. The country's core consumer price index rose from a year earlier 1.3 percent in December for the seventh straight month of gain.