BOJ Is Said to Mull How to Communicate Eventual Stimulus Exit
- Any rollback of policy is a long way off with inflation weak
- Yet there is growing pressure for the BOJ talk about it more
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The Bank of Japan is re-calibrating its communications to acknowledge that it is thinking about how to handle a future exit from monetary stimulus, without giving the impression that this is on the agenda anytime soon, according to people with knowledge of discussions at the central bank.
With inflation still far below target, the BOJ is contending with increasing debate about exit in markets, the media and among some lawmakers. Officials realize it’s unrealistic and unconstructive to try to remain silent on the issue and the BOJ now wants to make it known that it’s conducting simulations internally on how an exit could play out, said the people, who asked not to be identified.