BoJ’s Ueda: Fully possible to seek exit from stimulus while striving to achieve 2% inflation target

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Bank of Japan (BoJ) Governor Kazuo Ueda said on Thursday, it is “fully possible to seek exit from stimulus while striving to achieve 2% inflation target.”

Additional comments

Will consider rolling back massive stimulus programme once positive cycle of wages and inflation is confirmed.

Likelihood of achieving 2% inflation gradually rising.

The extent of rate hikes would be determined by situation at the time in case negative rates are lifted.

Regardless of whether we abandon YCC or leave it, we will continue to buy JGBs.

We will not cause any discontinuation in our monetary policy.

After ending negative rates, BoJ will use interest paid to reserves in controlling short-term interest rates.

Market reaction

USD/JPY was last seen trading 0.50% lower at 148.60.