TOKYO (Reuters) – Bank of Japan Governor Haruhiko Kuroda said on Monday the central bank would debate and communicate at an appropriate timing an exit plan from its ultra-loose monetary policy.

Kuroda said the BOJ did not have a specific exit strategy now because it would take “significant time” in achieving its 2 percent inflation target.

But he said an exit from ultra-easy policy would involve a hike in interest rates on excess reserves financial institutions park with the BOJ, and measures to shrink the central bank’s balance sheet.

“To ensure markets remain stable, it’s important to come up with a strategy and guidance at an appropriate timing on how to proceed with an exit,” Kuroda said.

“When the appropriate time comes, we will debate at our policy meetings an exit strategy and guidance, and communicate them appropriately.”

Kuroda also reiterated that the BOJ will “patiently” maintain its massive stimulus program to ensure inflation accelerates toward its 2 percent target.

“The economy is sustaining momentum for achieving the BOJ’s price target,” he said.

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