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Most BOJ watchers expect slower pace in reducing bond purchases

Published 6 days ago1 minute read

A majority of Bank of Japan watchers expect officials to slow their pace of reductions in government bond buying and keep interest rates unchanged at next week’s policy meeting, according to a Bloomberg survey.

All 53 economists forecast the BOJ to hold its benchmark rate at 0.5% at the end of a two-day meeting on June 17, the poll showed. For the central bank’s updated JGB buying plan, around 65% of survey respondents predict it’ll opt to taper bond purchases at a slower pace from April next year.

With no rate action foreseen, the primary focus of the gathering is the BOJ’s road map for its quantitative tightening. Gov. Kazuo Ueda’s board will discuss whether to continue with the pace it set last summer after the bond market has shown signs of strain due to heightened uncertainty over the global economy and fiscal policy.

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The Japan Times
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