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Photo = Yonhap news |
[Alpha Biz= Paul Lee] Bank of Japan Expected to Continue Reducing Long-Term Bond Purchases Beyond April 2026: Nikkei
Tokyo, June 8 – The Bank of Japan (BOJ) is expected to continue reducing its purchases of long-term government bonds beyond April 2026, according to a report by the Nikkei on Saturday.
The central bank is likely to make an official decision during its upcoming monetary policy meeting on June 16–17, the report said. BOJ policymakers are said to be largely in agreement that a continued reduction is appropriate, citing improvements in market functioning.
While the BOJ had previously decided in July 2023 to cut its monthly bond purchases from ¥6 trillion to ¥3 trillion by the first quarter of 2026, the Nikkei notes that further reductions may be set on a quarterly basis, with smaller incremental cuts under consideration.
If the tapering continues through March 2027, the BOJ's monthly bond purchases could fall to around ¥1–2 trillion, effectively returning to levels seen prior to its 2013 quantitative easing program.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
