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BOJ Owning More Debt Than Japan Banks Is Slow Death for Market

  • Central bank has 30% of debt, more than any investor class
  • Easing `already at the point where it’s extremely difficult'
Bloomberg business news

Breaking Down the BOJ's Policy Decision

Updated on

The Bank of Japan now holds more of the country’s sovereign debt than any other class of investor, as shrinking trade activity casts doubt over Governor Haruhiko Kuroda’s contention that bond-buying stimulus has no limits.

The BOJ held a record 315 trillion yen ($2.6 trillion) of Japanese government bonds as of the end of September, 30.3 percent of the total, data released Thursday show. That took it above the 28.4 percent share of financial institutions excluding insurers. At the start of the quantitative-and-qualitative easing program in April 2013, the comparable figures were 13.2 percent and 42.4 percent.