BOJ’s Nakaso: Discussing exit strategy too early, can cause market turbulence
|The Bank of Japan (BOJ) Deputy Governor Nakaso is back on the wires now, via Reuters, this time speaking on the ETF and JGB purchases made by the central bank.
Main Points:
Upward momentum in prices is intact
Productivity is improving, will lift potential growth rate
Still think ETF purchases are necessary but we decide on this at each policy meeting
Think the benefit of ETF purchases currently outweigh costs
Sees no problems with liquidity or functioning of JGB market
Expect Labour shortages to encourage structural reforms
Discussing exit strategy too early, can cause market turbulence
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