Bank of Japan sets aside maximum provision of losses for bond transactions
[BENGALURU] The Bank of Japan (BOJ) has set aside the maximum provision for losses on bond transactions, a spokesperson for the central bank said on Monday (Jun 2).
The level of the provision for possible losses on bond transactions was 100 per cent for fiscal 2024, the spokesperson said in an e-mailed response to Reuters.
The moves come as the Japanese central bank faces mounting pressure to keep hiking borrowing costs, after it kept short-term interest rates steady in its May meeting.
The BOJ has usually kept a target of provision for losses on bond transactions around 50 per cent of gains or losses from the transactions.
The Nikkei first reported BOJ setting aside maximum provision for losses on bond transactions earlier on Monday.
The provisions are funded with income from bond and other transactions, the Nikkei newspaper reported. REUTERS
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