BOJ to Weigh Slowdown in Bond Buying Cuts After Volatility Rises

The Bank of Japan is set to consider whether to taper its bond purchases at a slower pace while also leaving its benchmark interest rate unchanged, in a decision that will be closely scrutinized by the bond market.

All 53 BOJ watchers surveyed expect no change in the BOJ’s 0.5% interest rate at the two-day gathering concluding Tuesday. The spotlight will instead fall on the BOJ’s updated plan to curtail its purchases of government bonds as it seeks to shrink its footprint in the market. About two-thirds of respondents expect the cutbacks will be smaller from April compared with the current pace.