The Bank of Japan said Thursday that easing anxiety over the country's financial stability has increased the likelihood that its ultra-loose monetary policy will change.
This is the first time the BOJ has indicated a possible policy shift since it introduced its "quantitative easing" policy more than four years ago. Nevertheless, its Policy Board decided by majority vote the same day to leave the ultra-loose monetary policy intact.
"It is not certain whether there will be occasion to change the present framework of the quantitative easing policy during the projection period for this Outlook Report," the BOJ said in its biannual Outlook for Economic Activity and Prices, released the same day.