Japanese Prime Minister Shinzo Abe said on Friday the central bank’s ultra-easy policy should not continue forever, signaling his hope of laying the path toward an exit from a radical stimulus programme in coming years, Reuters reports.
Abe said the Bank of Japan’s 2 percent inflation target was only one measurement in guiding policy, suggesting that the central bank should not persist in meeting the goal at all cost.
The remarks are the clearest sign to date that Abe’s administration is taking a more relaxed approach toward hitting the price target than before, and becoming more amenable to the idea of a gradual withdrawal of crisis-mode monetary stimulus.
Abe said the BOJ’s massive stimulus programme, which was part of his signature “Abenomics” policies to reflate the economy, was needed to pull Japan out of chronic deflation.
But he said economic conditions have improved with the job market near full employment and growth strengthening.