The Bank of Japan will be able to begin winding down its extraordinary monetary stimulus within the next five years, the head of the central bank said.
"Sometime within the next five years, we will reach [our] 2 percent inflation target," Governor Haruhiko Kuroda told CNBC's Sara Eisen over the weekend. Once that level is reached, we will start "discussing how to gradually normalize the monetary condition."
Kuroda began his second five-year term this year. He has implemented a massive stimulus policy by cutting the central bank's benchmark interest rate to negative, keeping the 10-year Japanese government bond yield near 0 percent in an effort to control the yield curve and stepping up the Bank of Japan's asset purchases.
However, inflation remains low. Japan reported its consumer price index, excluding fresh food and energy, rose half a percent in the 12 months through March.
"In order to reach [our] 2 percent inflation target, I think the Bank of Japan must continue very strong accommodative monetary policy for some time," Kuroda added in his interview with CNBC.