BOJ's exit strategy - out of the frying pan and into the fire

Tokyo

BANK of Japan (BOJ) governor Haruhiko Kuroda may have opened a Pandora's box by indicating last week that the BOJ may reveal its strategy for exiting from massive monetary easing, as this could focus market attention on the problems likely to be involved, economists say.

Such problems, some of which will be shared in common with other leading central banks, might involve markets having to absorb huge amounts of government and other debt securities as well as corporate bonds and equity instruments, they suggest.