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 is the current state of the real economy according to the transcript?

• It is improving better than expected.

• It is worsening.

• It is declining.

• It is stagnant.

What is the main concern regarding the balance sheet?

• It is shrinking rapidly.

• It is larger than the Federal Reserve's.

• It is too small.

• It is not affected by quantitative easing.

How much of the GDP equivalent has been acquired due to quantitative easing?

• 50%

• 20%

• 80%

• 100%

When is it considered appropriate to discuss the exit strategy?

• Immediately.

• Once inflation reaches 2%.

• When inflation is at 0%.

• After fiscal 2018.

What is the current inflation rate compared to the target?

• It is above 2%.

• It is around 0%.

• It is negative.

• It is at 2%.