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