Bank of Japan's Bold Move: Trimming Bond Purchases
The Bank of Japan has decided to keep interest rates unchanged while planning to trim its bond purchases in the future. At a policy meeting, it was agreed to continue current bond-buying practices but propose a plan to reduce purchases in the next one to two years.
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- Country:
- Japan
The Bank of Japan kept interest rates unchanged on Friday but said it would trim bond buying in the future to allow long-term interest rates to move more. At its two-day policy meeting, the central bank said it would continue to buy government bonds at the current pace. But it decided to come up with a specific plan to trim purchases for the next one to two years, at a subsequent policy-setting meeting in July.
As widely expected, the BOJ maintained its short-term interest rate target in a range of 0-0.1% in a unanimous vote. Governor Kazuo Ueda is expected to hold a news conference to brief on the decision at 3:30 p.m. (0630 GMT).
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