According to head of the Bank of Japan Haruhiko Kuroda, the leading regulator of the country will take its time to complete the current monetary policy. He will only report on plans to come out the ultrasoft monetary policy when there are favorable conditions for achieving the optimal level of inflation.
Haruhiko Kuroda stresses that the inflation rate is currently far from 2%, so the curtailment of incentives is irrelevant. The head of the BOJ is ready to consider the experience of other central banks using the policy of reducing incentives.
As earlier reported, in April 2018, the key inflation rate in the Land of the Rising Sun fell for the second consecutive month, creating a number of challenges for the regulator. The fall in the rate was recorded for the first time since April 2016.
Analysts estimated that the slowdown in inflation, in addition to the disappointing data on Japan's GDP, may prevent the central bank from rolling the ultrasoft monetary policy back.
According to Haruhiko Kuroda, the regulator also takes into account by-effects of the large-scale stimulating program, including a negative impact on financial institutions.
