When the Bank of Japan is finally ready to signal the start of an exit from its massive monetary stimulus, the shift will be seen in its target rate, Gov. Haruhiko Kuroda said in an interview.
While he stressed that policy settings will remain at their current rock bottom levels for now, the comments on what an exit will one day look like were among his clearest yet.
"When two percent inflation target is met or is close to be met, of course we can change the target, the monetary operating target of interest rate," Kuroda said when asked in an interview with Bloomberg television how the central bank would signal an exit. "At this moment, inflation is only one percent, so we will continue the current yield curve control at the current level of interest."