BoJ: officials issue statements related to an “exit” - Nomura

In respect of the BoJ, analysts at Nomura noted the rise of ‘exit talk’ and policy implications.

Key Quotes:

"That being the case, it would seem reasonable to conclude that the recent willingness of BOJ officials to engage in “exit talk” has no implications for monetary policy in the near term."

"The primary reason for the willingness of BOJ officials to engage in “exit talk” is presumably a desire to show themselves accountable for decisions on monetary policy and to improve communication with the market."

"If, in addition, a greater willingness to engage issue “exit” information reflects a desire to show a certain degree of consideration for the fiscal disciplinarians within the ruling coalition and indirectly to support the government as a whole in putting the public finances on a sounder footing, we can assume that it does not reflect a debate within the BOJ about the start of an “exit”."

"We think it would be going too far to see the greater willingness of BOJ officials to issue statements related to an “exit” as an indication that monetary policy may change soon."

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