Is Japan approaching policy normalization, after Kazuo Ueda's bullish remarks?

In a recent press interview, Bank of Japan Governor Kazuo Ueda spoke about the future of interest rates and monetary policy in Japan.

Ueda's remarks were more bullish than expected, which begs the question, is Japan approaching policy normalization?

Indeed some analysts notice that Ueda is putting the seeds for exiting the current ultra-easy monetary policy, and continues to give signals on the matter.

Ueda 

The most important remarks by BOJ Governor Kazuo Ueda were as follows: 

The central bank could end negative interest rate policies when inflation approaches 2%.

The BOJ could have enough data by the end of the year to determine whether it needs to end negative interest rates.

As Japan witnesses higher inflation and strong wages, more options are being considered. 

BOJ will maintain ultra easy monetary policies for the time being.

However, as the Japanese economy sends out positive signals, achieving targets is still far off. 

Higher wages are boosting services prices, but the question remains on whether wages will maintain growth next year.

BOJ

At its last meeting, Bank of Japan Governor Kazuo Ueda decided to maintain interest rates unchanged at minus 0.1%. 

As for policies controlling government yields, the BOJ maintained its current target for government 10-year treasury yields at zero, and the upward limit at 0.5%. 

However, the BOJ will allow more flexibility with yields moving away from limits. 

Important Step

The new modifications with the flexible government yield limits are important to improve Japan's readiness to face risks and eventually normalize policies.