BOJ Said to See Significant Room for More Bond Purchases

Bank of Japan officials see significant scope to boost government bond purchases if needed to achieve their inflation target, according to people familiar with the discussions, signaling little concern with perceptions of underwriting fiscal deficits.

While no decision will be made until the central bank has more time to assess price trends, the current pace of asset purchases -- equivalent to 70 percent of new government-debt issuance -- isn’t a limit for many officials, according to the people, who asked not to be named as the talks are private. Some officials highlight the size of the market offering plenty of room to buy more, according to the people. The BOJ in September reported that it held 15.4 percent of the 969 trillion yen ($9.4 trillion) of government bonds outstanding.