BOJ may move towards stimulus exit in FY2019: BOJ governor candidate Ito

TOKYO (Reuters) – The Bank of Japan may take a step towards withdrawing its massive stimulus program during fiscal 2019/20, when it expects inflation to reach its 2 percent target, Takatoshi Ito, an academic seen as a possible candidate to be the next BOJ governor, said on Wednesday.

“The BOJ says inflation will likely approach 2 percent during fiscal 2019. If we take that forecast into account, we can expect the BOJ to take a step towards exiting (ultra-easy policy) during that year,” Ito said in a seminar.

“It may take another few years” for interest rates to be raised to normal levels, he said.

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