The Bank of Japan would consider winding down its monetary stimulus if inflation reaches 2% around fiscal 2019, Governor Haruhiko Kuroda told parliament, acknowledging the possibility of an exit for the first time, Reuters reported.
"The BOJ's board members expect that prices will reach 2% around fiscal 2019," Kuroda said during his confirmation hearing. "If this happens, there's no doubt that we will consider and debate an exit."
However, with inflation below the 2% target, Kuroda reiterated the central bank's resolve to retain its stimulus program for now.
"If economic conditions become favorable and our price target is achieved, we will normalize monetary policy," added Kuroda, who has been nominated to head the central bank for another five years.
Meanwhile, he dismissed calls to raise the central bank's long-term yield target just because inflation crossed the 1% mark in January.
