Economics
BOJ on Course to Shrink Bond Pile Even as Fed, ECB Boost Theirs
- Current BOJ tapering pace would cut purchases below redemption
- ECB is restarting QE, Fed plans to expand balance sheet
Haruhiko Kuroda
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
The Bank of Japan is on course for an historic turning point that would see its bond holdings shrink next year for the first time in a decade, according to a Bloomberg News analysis.
The shift is all the more notable given that the European Central Bank and Federal Reserve are set to once again increase their balance sheets. It’s a remarkable prospect for a central bank that has refused to drop guidance for boosting government debt holdings by 80 trillion yen ($740 billion) annually, even as it steadily tapers purchases since pivoting to yield-curve control in 2016.