The Bank of Japan's chief says it will be possible to transition out of the long-running monetary easing policy in order to achieve its 2-percent inflation target.

BOJ governor Kuroda Haruhiko made the comment during a Diet committee session on Thursday.

He said, "The BOJ will combine various policy measures. I think the bank is able to ensure stability in bonds and other financial markets, while making a smooth exit from monetary easing."

Kuroda said that there are two key questions, the first being how to raise interest rates, and the second is how to scale back the bank's balance sheet, which has expanded due to accelerated asset purchases.

Kuroda stressed that for the time being, the bank will stay on its course of monetary easing. Kuroda said that national inflation is expected to stabilize around 1.9 percent in the current fiscal year, then slow to about one percent during the next fiscal year.