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Economy

BOJ study hints at exit from easing

Goldman calculates that QE could return to pre-Kuroda levels by the end of 2019

Bond-market players saw hints in a Bank of Japan working paper discussing scenarios where central banks curtailed monetary easing programs. (Photo by Takaki Kashiwara)
Bond-market players saw hints in a Bank of Japan working paper discussing scenarios where central banks curtailed monetary easing programs. (Photo by Takaki Kashiwara)

TOKYO -- A paper by Bank of Japan staff has set the bond market buzzing about whether the central bank is laying the groundwork for an eventual exit from its long-running monetary easing program.

The Oct. 1 working paper discusses how curtailing the bank's purchasing of government bonds would affect the market. It also includes a simulation of a scenario where a central bank begins to trim sovereign debt holdings. It was co-authored by two employees of the Monetary Affairs Department, which plans monetary policy and analyzes the effects of the bond purchasing program.

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