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Japan Signals BOJ Won’t Adopt Foreign-Bond Purchases

  • Abe says BOJ buying foreign bonds illegal if FX intervention
  • PM’s comment follows suggestions by economic adviser Hamada

While Bank of Japan Governor Haruhiko Kuroda has indicated an openness to new ideas, at least one measure -- buying foreign bonds -- appears to be off the table as the central bank explores its options for monetary stimulus.

Prime Minister Shinzo Abe told reporters at the close of a Group of 20 meeting in Hangzhou, China, late on Monday that such purchases are illegal under the Bank of Japan Law if they are meant as a form of currency intervention.