22.05.201802:06:00UTC+00BOJ to Signal Exit Plan if Prices Gain Momentum, Kuroda Says

Bank of Japan Haruhiko Kuroda said the central bank will communicate with markets its plan to exit from ultra-easy policy when conditions for reaching its price target pick up.

But the head of the Japanese central bank cautioned that it was too early to debate whether the BOJ could wind down its massive stimulus program, with inflation far from its two percent target.

In a semi-annual testimony to the upper house of parliament on Tuesday, Kuroda said that they will disseminate specific details on how the central bank plan to exit once inflation rises toward 2 percent and conditions for achieving their target gradually come into effect.

Kuroda said that present conditions are not appropriate to consider specific timings for an exit. He said that the BOJ will not conclude its ultra-easy policy before inflation hits 2 percent.

The BOJ has several tools to clean up excess funds and can study the actions of other central banks in their initiative to smoothly reduce stimulus.

In April, Japan's core consumer prices slowed for the second consecutive month, underlining the view weak inflation will keep the central bank from tapering stimulus any time in the near future.