The Bank of Japan said on Friday it would start trimming its huge bond purchases and announce a detailed plan next month on reducing its nearly $5-trillion balance sheet, taking another step toward unwinding its massive monetary stimulus.
But the bank decided to lay out details of its bond tapering plan for the coming one to two years at its next meeting on July 30-31, after collecting views from market participants. Some market watchers had expected it to drop more definitive clues on Friday. “It’s similar to how the U.S. Federal Reserve disclosed a medium– to long-term guidance on tapering beforehand, to avoid heightening uncertainty at each policy meeting,” he said.
The BOJ exited negative rates and bond yield control in March in a landmark shift away from a decade-long, radical stimulus program. The BOJ’s efforts to normalize monetary policy come as other major central banks, having already tightened monetary policy aggressively to combat soaring inflation, look to cut rates.
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Japan’s banks expect gradual interest rate rise, continued local lending growthThe Bank of Japan ended negative interest rates and bond yield curve control in March and governor Kazuo Ueda has said it will eventually reduce bond purchases, but has not said when
Source: globeandmail - 🏆 5. / 92 Read more »
Source: BNNBloomberg - 🏆 83. / 50 Read more »