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MNI BRIEF: BOJ Sees No Need To Alter JGB Wide Range

(MNI) Tokyo
(MNI) TOKYO

The Bank of Japan will likely maintain its wide ranging government bond buying operations due to uncertainties over the global economy and financial markets, MNI understands.

The operation's wide range decided late March is aimed at increasing the BOJ's flexibility following the instability of the U.S. financial markets earlier in the year. While the U.S. financial system has calmed, the impact of past Federal Reserve rate hikes on markets and the economy will become clearer in or after the middle of this year.

BOJ officials see no need to change its current stance and maintaining a wide range of JGB operations will be harmless for market players and the Bank. In Q2, the BOJ lowered the lower end of its bond buying operation and raised the higher end with regard to all JGB buying operations. The BOJ will release the guideline for JGB operations for Q3 on June 30.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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