BOJ Policymakers Suggested Reducing JGB Purchases at April Meeting

Tokyo, May 9 (Jiji Press)--Many Bank of Japan policymakers at the central bank's April 25-26 policy-setting meeting suggested reducing its purchases of Japanese government bonds, with one calling such a move "one option" to restore market functions, a summary of the meeting showed Wednesday.

"One option is to reduce the Bank's monthly purchase amount of JGBs," a BOJ Policy Board member said, while another member noted, "It is important for the Bank to proceed with reducing its purchase amount of JGBs in a timely manner."

The April meeting came after the BOJ decided in March to end its negative interest rate policy and other easing measures while maintaining its monthly JGB purchases at around 6 trillion yen.

In a policy statement issued after the April meeting, the BOJ did not mention the monthly purchase amount.

Regarding the yen's recent depreciation, meanwhile, a policymaker said at the April meeting, "If underlying inflation continues to deviate upward from the baseline scenario against the backdrop of a weaker yen, it is quite possible that the pace of monetary policy normalization will increase."

[Copyright The Jiji Press, Ltd.]