Bank of Japan Stepping Up Bond Buying Pace With or Without Stimulus Shift
- Redemptions forcing BOJ to expand purchases to reach target
- BOJ's ownership of JGB market seen reaching 50% by 2017
This article is for subscribers only.
The Bank of Japan will be stepping up its unprecedented bond purchases, whether it expands its stimulus program or not this week.
With Governor Haruhiko Kuroda’s easing now 2 1/2 years-old, redemptions of previously purchased debt mean reinvestment must be added to the BOJ’s regular monthly purchases so it can stay on course to expand the monetary base by 80 trillion yen ($661 billion) per year. The monthly average BOJ bond buying in the quarter ended Sept. 30 was 9.3 trillion yen, up from 9 trillion yen in the three months ended March 31.