BOJ Hears from Market Players on Planned JGB Purchase Cuts


Tokyo, July 9 (Jiji Press)--The Bank of Japan began a two-day session with bond market participants Tuesday to hear opinions on a planned reduction in its purchases of Japanese government bonds.

At its July 30-31 policy meeting, the central bank expects to adopt a plan for reducing its JGB purchases over the next year or two. It currently buys JGBs at a pace of about 6 trillion yen per month.

By receiving market feedback, the BOJ hopes to avoid any market confusion that could be caused by the purchase cuts, such as a spike in long-term interest rates.

Ahead of the meeting, the BOJ published key responses from a survey of market participants on the reductions. One respondent said the BOJ should eventually reduce its JGB purchases to zero, while another said that the amount of purchases should be cut to 2 trillion yen to 3 trillion yen, and a third preferred a reduction to about 4 trillion yen.

Responses on a desired pace of cuts varied from prompt reduction of a certain amount to gradual and slow cuts.

[Copyright The Jiji Press, Ltd.]

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