BOJ Mizuno Calls for Careful Communication over Exit Strategies

Okayama, Aug. 20 (Jiji Press)--Bank of Japan policymaker Atsushi
Mizuno indicated Thursday that the central bank should take special care in
communicating with financial markets over when and how to end its
unconventional steps introduced earlier this year to help corporate
financing.
Speculation about exit strategies could help destabilize financial
markets, he said at a lecture meeting in this western Japan city.
It is about time for many central banks in the world to discuss the
needs to study strategies toward ending their temporary steps taken in
response to the global financial crisis, said Mizuno, a member of the BOJ's
Policy Board.
But the time is not yet ripe for them to consider departing from
the unorthodox policy steps any time soon, Mizuno said.
At its policy-setting meeting in July, the BOJ decided to extend
its special measures to support firms' fund raising, including outright
purchases of corporate bonds, by three months until the end of this year.
Mizuno said that the Japanese economy has stopped deteriorating but
that the level of economic activities remain extremely low.
The tempo of recovery in exports and production may slow gain in
autumn and later due to the fragile growth of the U.S. and European
economies, Mizuno said, adding that it remains very uncertain whether
Japan's economic recovery will continue.
The Japanese economy's growth potential may have fallen further
from around one pct as estimated by the BOJ in April, he said.