BOJ chief hints at need for monetary 'exit strategy'

Tokyo

BANK of Japan governor Haruhiko Kuroda dropped the first hints on Tuesday about how the BOJ might go about "exiting" its ultra-easy monetary policy which has seen the central bank's balance sheet increase hugely in size in recent years as it fought to rekindle inflation.

Mr Kuroda's reference in Parliament to the possibility of the BOJ raising interest rates on the "excess reserves" which it holds on behalf of commercial banks signalled that it could adopt an approach more akin to that of the European Central Bank (ECB) than that of the US Federal Reserve.