A former Bank of Japan board member said........>

BOJ: A former Bank of Japan board member said Friday that the BOJ would face the

limits of its ability to buy Japanese government bonds in May 2018 if it

continues to buy JGBs at the current annual pace of about Y60 trillion. If the

BOJ faces the limits of JGB buying, "the liquidity in JGBs would fall

considerably and volatility in JGBs would fall sharply, which in turn would

destabilize the nation's financial system and the economy," Takahide Kiuchi,

whose five-year term on the board ended on July 23, said at Nippon Press Club.It

would also increase excess risk-taking attitudes and cause major adjustments of

global financial markets, said Kiuchi, who is currently Nomura Research

Institute's executive economist. Kiuchi also said that if the BOJ slows the

annual pace of JGB buying to Y45 trillion, the limits would be pushed back to

August 2020. Since April 2015, Kiuchi has continuously proposed that the BOJ

slow the annual pace of its purchases of Japanese government bonds to Y45

trillion from Y80 trillion. (For full story, see Main Wire 22:12 BST 09/22)