Smooth Exit from Monetary Easing "Possible": BOJ Chief

Politics Economy

Tokyo, May 26 (Jiji Press)--Bank of Japan Governor Haruhiko Kuroda said Thursday the central bank will be able to smoothly exit from the current ultraeasy monetary policy.

"It's possible to carry out an exit strategy appropriately while maintaining the stability of financial markets," Kuroda told a House of Representatives Budget Committee meeting.

Kuroda expressed his confidence in a smooth policy change despite investor concerns over the possibility of the BOJ's shift toward tightening causing the yen's sharp appreciation and a long-term interest rate spike.

Following his remarks, the dollar temporarily dropped to around 126.50 yen.

Reflecting soaring resources prices due to Russia's invasion of Ukraine, Japan's core consumer price index, excluding volatile perishables, rose 2.1 pct in April from a year earlier, exceeding the central bank's 2 pct inflation target.

[Copyright The Jiji Press, Ltd.]

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