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MNI POLICY: BOJ Board Weighs Pace, Scale Of JGB Reductions

(MNI) Tokyo
(MNI) TOKYO

BOJ board members are watching decreased JGB buying operations to determine the feasibility of a wider reduction.

Bank of Japan board members are closely watching how the market reacts to lower Japanese government bond buying directed by the operations department to determine the future pace and scale of further board-driven reductions, MNI understands.

Operations has been tasked with reducing JGB buying within a certain range, depending on bond supply-demand conditions, but the department remains skeptical over sharply lowering purchases as the board maintained its JPY6 trillion a month target when it last met. (See MNI BOJ WATCH: Ueda Flags Policy Change On Weak Yen-Led Inflation)

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Bank of Japan board members are closely watching how the market reacts to lower Japanese government bond buying directed by the operations department to determine the future pace and scale of further board-driven reductions, MNI understands.

Operations has been tasked with reducing JGB buying within a certain range, depending on bond supply-demand conditions, but the department remains skeptical over sharply lowering purchases as the board maintained its JPY6 trillion a month target when it last met. (See MNI BOJ WATCH: Ueda Flags Policy Change On Weak Yen-Led Inflation)

Keep reading...Show less