The Bank of Japan has boosted its provisions for JGB losses – braced for higher rates

Forex Short News

Bank of Japan info comes via Japanese media, Nikkei (gated):

  • The Bank of Japan has set aside the maximum provisions for losses on
    bond transactions
  • a sign of how the central bank is preparing for
    rising interest rates
  • For fiscal 2024, the
    BOJ raised the level of provisions to 100% for the first time, Nikkei
    has learned
  • the provisions are funded with income from bond and other transactions
  • provisions … target has usually been 50% of income … pre- fiscal 2024, the BOJ had gone as high as 95% in fiscal 2018 … in fiscal 2024, the BOJ increased provisions by 472.7 billion yen ($3.28 billion at current rates), compared with a 922.7 billion yen increase in fiscal 2023

Bank of Japan Governor Ueda

This article was written by Eamonn Sheridan at www.forexlive.com.