Bank of Japan Gov. Kazuo Ueda said considerations over the central bank's finances would not prevent it from phasing out its massive monetary stimulus when the appropriate time comes.
While Ueda said there was "still a distance to go" before the BOJ exits ultra-loose monetary policy, his remarks come at a time when markets are rife with speculation he will dismantle his predecessor Haruhiko Kuroda's radical stimulus program.
Speaking at an academic seminar on Saturday, Ueda said the BOJ's profits will be squeezed when it raises interest rates because doing so would increase interest rate payments it makes to financial institutions' reserves parked at the central bank.