The Bank of Japan has received a significant number of requests to halve its monthly bond purchases in the coming years as part of a quantitative tightening (QT) plan to be implemented this month, minutes of a meeting between the bank and financial institutions on Friday showed.
A significant number of participants also urged the BOJ to gradually taper its bond purchases to avoid unsettling the bond market, according to minutes of talks held between the central bank and bond market participants on July 9 and 10.
The findings will be taken into account when the BOJ presents a detailed plan at its policy meeting on July 30-31 on how the bank will scale back its large-scale bond purchases and shrink its $5 trillion balance sheet.
