Latest news with #bondtaper
CNA
3 days ago
- Business
- CNA
BOJ urged to keep or slow bond taper pace from fiscal 2026
TOKYO :The Bank of Japan received a sizeable number of requests to maintain or slightly slow the pace of tapering in its bond purchases from fiscal year 2026 onward, minutes of a meeting between the bank and financial institutions showed on Monday. Despite a recent spike in super-long yields, a significant number of bond market participants also urged the central bank to leave unchanged its existing bond taper plan running through March 2026, the minutes showed. The requests, made at the BOJ's meeting with bond market participants on May 20-21, heighten the chance the BOJ will proceed slowly in reducing its huge balance sheet. "From the viewpoint of predictability, the Bank should maintain the current pace of the reduction," one participant was quoted as saying in the minutes on the BOJ's bond taper plan for April 2026 onward. The BOJ has been slowing bond purchases since August last year to halve monthly buying to 3 trillion yen by March 2026. The opinions will be taken into account at the central bank's next policy meeting on June 16-17, when it will conduct a review of its current taper plan and come up with a programme for fiscal 2026 onward.
Reuters
3 days ago
- Business
- Reuters
BOJ urged to keep or slow bond taper pace from fiscal 2026
TOKYO, June 2 (Reuters) - The Bank of Japan received a sizeable number of requests to maintain or slightly slow the pace of tapering in its bond purchases from fiscal year 2026 onward, minutes of a meeting between the bank and financial institutions showed on Monday. Despite a recent spike in super-long yields, a significant number of bond market participants also urged the central bank to leave unchanged its existing bond taper plan running through March 2026, the minutes showed. The requests, made at the BOJ's meeting with bond market participants on May 20-21, heighten the chance the BOJ will proceed slowly in reducing its huge balance sheet. "From the viewpoint of predictability, the Bank should maintain the current pace of the reduction," one participant was quoted as saying in the minutes on the BOJ's bond taper plan for April 2026 onward. The BOJ has been slowing bond purchases since August last year to halve monthly buying to 3 trillion yen by March 2026. The opinions will be taken into account at the central bank's next policy meeting on June 16-17, when it will conduct a review of its current taper plan and come up with a programme for fiscal 2026 onward.
Reuters
22-05-2025
- Business
- Reuters
BOJ should step in only in a 'severe' bond market rout, policymaker says
TOKYO, May 22 (Reuters) - The Bank of Japan does not need to make big changes to its bond taper plan and should only ramp up buying in times of "severe market disruption," its board member Asahi Noguchi said, a sign the bank sees no imminent need to arrest recent sharp rises in super-long bond yields. Noguchi, a former academic seen as among dovish members of the board, also said the BOJ must move cautiously in raising interest rates to ensure underlying inflation stabilises around its 2% target backed by sustained wage increases. "It's crucial that the BOJ take a measured, step-by-step approach," or spend plenty of time examining the economic impact of each rate hike before moving to the next one, Noguchi said in a speech on Thursday. At its policy meeting next month, the BOJ will conduct an interim review of its bond tapering plan running through March and come up with a programme for April 2026 onward. "In my view, it is unnecessary at this point to make any major changes to the current plan," Noguchi said. "That said, the bank will need to examine the reduction plan for April 2026 onward from a longer-term perspective," he said, adding that the BOJ can spend "sufficient time" in reducing the size of the balance sheet. The BOJ allows markets to set long-term interest rates, while leaving itself some flexibility to change the amount of its bond buying "in case of sudden market swings", Noguchi said. "However, such an unusual measure will only be implemented during times of severe market disruption," he said on the threshold for ramping up the BOJ's bond buying through emergency market operations.
CNA
22-05-2025
- Business
- CNA
BOJ should step in only in a 'severe' bond market rout, policymaker says
TOKYO :The Bank of Japan does not need to make big changes to its bond taper plan and should only ramp up buying in times of "severe market disruption," its board member Asahi Noguchi said, a sign the bank sees no imminent need to arrest recent sharp rises in super-long bond yields. Noguchi, a former academic seen as among dovish members of the board, also said the BOJ must move cautiously in raising interest rates to ensure underlying inflation stabilises around its 2 per cent target backed by sustained wage increases. "It's crucial that the BOJ take a measured, step-by-step approach," or spend plenty of time examining the economic impact of each rate hike before moving to the next one, Noguchi said in a speech on Thursday. At its policy meeting next month, the BOJ will conduct an interim review of its bond tapering plan running through March and come up with a programme for April 2026 onward. "In my view, it is unnecessary at this point to make any major changes to the current plan," Noguchi said. "That said, the bank will need to examine the reduction plan for April 2026 onward from a longer-term perspective," he said, adding that the BOJ can spend "sufficient time" in reducing the size of the balance sheet. The BOJ allows markets to set long-term interest rates, while leaving itself some flexibility to change the amount of its bond buying "in case of sudden market swings", Noguchi said. "However, such an unusual measure will only be implemented during times of severe market disruption," he said on the threshold for ramping up the BOJ's bond buying through emergency market operations.
