MNI BRIEF: BOJ Holds, Bond Reduction Details Due July

The Bank of Japan board on Friday kept the unsecured overnight call loan rate in a range of between zero percent and 0.1% but decided to reduce the scale of Japanese government bond buying.

The policymakers will decide on a more detailed plan for the reduction of its purchase amounts over the next one to two years or so at the July 30-31 meeting.

For now, the BOJ decided to maintain its JGB buying at the same JPY6 trillion level decided on at the March meeting.

MNI reported the BOJ could mull a cut to its JGB buying at the June meeting. (See MNI POLICY: BOJ Mulls Cut In Bond Buys As Early As Next Week)

In accordance with the decision at the meeting today, the BOJ's Financial Markets Department will hold bond market group meetings, however, the dates have not been decided.