BOJ’s Kuroda Says It’s Premature to Talk Exit Strategy

The transcript discusses the improvement in the Japanese economy, which is doing better than expected. However, inflation remains a concern. The use of unconventional monetary tools has led to a significant increase in the balance sheet, equivalent to 80% of GDP. The discussion covers managing this enlarged balance sheet and the timing of addressing it. The inflation target is set at 2%, but current levels are around zero, making it premature to discuss an exit strategy. The forecast suggests reaching the target by fiscal 2018.

What improvements have been observed in the real economy compared to previous months?

What concerns are raised regarding inflation despite the economic improvements?

How does the balance sheet of the discussed economy compare to that of the Fed?

What is the target inflation rate mentioned, and what is the current status of inflation?

Why is it considered premature to discuss the exit strategy at this stage?