BOJ to weigh cuts to government bond purchases

Japan central bank's JGB holdings would shrink as bonds mature

20240612N BOJ

The Bank of Japan has continued large-scale purchases of Japanese government bonds even after ending its yield curve control policy in March. (Photo by Satoko Kawasaki)

Nikkei staff writers

TOKYO -- The Bank of Japan will consider gradually reducing its Japanese government bond holdings at a two-day policy meeting that starts Thursday, Nikkei has learned, taking a step toward normalizing not just interest rates, but the quantitative side as well.

To prevent sharp swings in long-term interest rates, the BOJ has continued to purchase large amounts of JGBs even after ending the negative interest rate policy in March.

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