TOKYO, June 14 (News On Japan) – The Bank of Japan decided to reduce its purchases of government bonds on June 14 after its Monetary Policy Meeting. The pace of reduction will be determined at the next meeting.
In March this year, the Bank of Japan ended its negative interest rate policy, marking a significant shift from its large-scale monetary easing measures. Despite this, the BOJ has continued to buy about 6 trillion yen worth of government bonds every month to maintain an accommodative environment.
However, the BOJ has now decided to revise this framework and reduce the amount of its bond purchases.
The specific size of the reduction was not disclosed; a plan for the next one to two years will be adopted at the next meeting at the end of July.
The announcement to hold off on raising short-term interest rates led to the yen weakening by about 1 yen against the dollar, to almost 158 โโyen per dollar on the foreign exchange market.
Source: ANN
