BOJ policymakers proposed reducing JGB purchases at the April meeting

Tokyo (Jiji Press) – Many Bank of Japan policymakers at the central bank’s April 25-26 policy-setting meeting suggested reducing purchases of Japanese government bonds, with one calling such a move “one option” to improve market functions to recover. as emerged from Wednesday’s meeting.

“One option is to reduce the monthly purchase amount of JGBs by the Bank,” said a member of the BOJ Policy Board, while another member noted: “It is important for the Bank to continue reducing the purchase amount in a timely manner to JGBs.”

The April meeting came after the BOJ decided in March to end its negative interest rate policy and other easing measures while keeping monthly JGB purchases at around ¥6 trillion.

In a policy statement issued after the April meeting, the BOJ did not specify the monthly purchase amount.

On the recent yen depreciation, a policymaker at the April meeting said: “If underlying inflation continues to deviate from the base case against the backdrop of a weaker yen, it is entirely possible that the pace of monetary policy normalization will increase. ”

Several policymakers indicated that the central bank should further adjust its monetary policy.

“It will be necessary for the Bank to raise the policy rate in a timely and appropriate manner as the prospects for economic activity and prices become more likely to be realised,” a policymaker said.

Another policymaker suggested: “One option is to adjust the level of monetary easing through moderate interest rate increases, in response to developments in economic activity and prices, as well as financial conditions.”