BOJ's Muto says shift won't mean policy tightening

Bank of Japan Deputy Governor Toshiro Muto said on Thursday 23 February that an end to the BOJ's ultra-loose monetary policy framework will not signify an immediate credit tightening.

The BOJ is widely expected to end its "quantitative easing" policy of flooding the banking system with money in favour of traditional interest-rate targeting in the next few months.

"Terminating quantitative easing would not mean an immediate monetary tightening," Muto told a parliamentary committee.

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