TOKYO—Bank of Japan Governor Haruhiko Kuroda said on Thursday the central bank can execute a smooth exit from its ultra-loose monetary policy, though doing so “won’t be easy.”
Kuroda repeated his view that the central bank must maintain ultra-easy monetary policy for now, with consumer inflation expected to slow next year and beyond, after speeding up to near its 2 percent target this year because of surging energy costs.
When the right moment comes, the BOJ’s board will plan an exit from its easy policy and lay it out to the public, he said.
“The key would be how to raise interest rates and scale back the BOJ’s expanded balance sheet,” Kuroda told parliament on Thursday….