The Bank of Japan is expected to halt its quarterly reductions in government bond purchases starting next fiscal year, according to former board member Makoto Sakurai.
- The central bank has been trimming its bond buying by ¥400 billion every quarter since last summer, but recent pressure from rising yields has likely made further cuts too risky.
- Sakurai noted that authorities are concerned continued reductions could push yields higher, making it harder to manage the economy and government debt.
This article was written by Eamonn Sheridan at www.forexlive.com.