Gate News bot message, the market generally expects the Bank of Japan to maintain the current policy interest rate of 0.5% this week. The focus of the market is whether it will adjust the current plan to gradually reduce the pace of Japanese government bond purchases. According to the existing policy, the Bank of Japan plans to reduce the scale of government bond purchases by 400 billion yen each quarter, and this plan will continue until March 2026.
The Governor of the Central Bank, Kazuo Ueda, previously stated that after the end of the Yield Curve Control (YCC) policy, government bond yields should be determined by the market. JPMorgan expects that the Bank of Japan will reduce its bond purchase scale at the current pace until March 2026, and then may slow the reduction to 200 billion yen per quarter, gradually lowering the monthly bond purchase scale to about 2.1 trillion yen before March 2027, after which it may stop further reductions.
Source: Jin10
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JPMorgan: The Bank of Japan is expected to signal a shift in QT pace this week.
Gate News bot message, the market generally expects the Bank of Japan to maintain the current policy interest rate of 0.5% this week. The focus of the market is whether it will adjust the current plan to gradually reduce the pace of Japanese government bond purchases. According to the existing policy, the Bank of Japan plans to reduce the scale of government bond purchases by 400 billion yen each quarter, and this plan will continue until March 2026.
The Governor of the Central Bank, Kazuo Ueda, previously stated that after the end of the Yield Curve Control (YCC) policy, government bond yields should be determined by the market. JPMorgan expects that the Bank of Japan will reduce its bond purchase scale at the current pace until March 2026, and then may slow the reduction to 200 billion yen per quarter, gradually lowering the monthly bond purchase scale to about 2.1 trillion yen before March 2027, after which it may stop further reductions.
Source: Jin10