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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)

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