ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

BOJ's trim of bond purchases hints at 'stealth tapering'

Central bank shifts to waiting game, looking out for financial institutions

The Bank of Japan supplies funds to the market through such means as issuing banknotes and buying government bonds.   © Reuters

TOKYO -- The Bank of Japan is slowing the supply of money, arousing speculation that it is paving the way for a trimming of its ultra-easy monetary policy.

The supply of funds to the market in November showed an increase of 51.7 trillion yen ($458 billion), effectively the smallest annual pace of growth since the BOJ introduced easing of a "a different dimension" in April 2013. The central bank is steadily shifting the focus of its easing policy to controlling interest rates, away from "quantitative" measures, as prices have doggedly refused to rise.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more