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27 May 2014
BoJ starting to consider exit strategy to QQE?
FXStreet (Bali) - According to Reuters, the Bank of Japan has started informal discussion for a possible exit strategy its quantitative and qualitative monetary easing program.
As Reuters reports: "Current and former central bankers familiar with internal discussions say an informal debate is under way on how to prepare for an exit from the BOJ's 13-month-old "quantitative and qualitative monetary easing."
Reuters adds: "With inflation now past the half-way mark and signs that the economy has weathered last month’s sales tax increase, Japanese central bankers are already thinking about the next chapter.”
The article clarifies that "the BOJ has no plans to trim the stimulus or publicly suggest the eventual drawdown any time soon, according to those familiar with the internal debate.”
The article concludes by noting that "there is a strong sense within the BOJ board that the stimulus so far has worked well and the next step, albeit distant, could be policy tightening, not further easing."
As Reuters reports: "Current and former central bankers familiar with internal discussions say an informal debate is under way on how to prepare for an exit from the BOJ's 13-month-old "quantitative and qualitative monetary easing."
Reuters adds: "With inflation now past the half-way mark and signs that the economy has weathered last month’s sales tax increase, Japanese central bankers are already thinking about the next chapter.”
The article clarifies that "the BOJ has no plans to trim the stimulus or publicly suggest the eventual drawdown any time soon, according to those familiar with the internal debate.”
The article concludes by noting that "there is a strong sense within the BOJ board that the stimulus so far has worked well and the next step, albeit distant, could be policy tightening, not further easing."