The Bank of Japan is expected to halt its quarterly reductions in government bond purchases starting next fiscal year, according to former board member Makoto Sakurai.
- The central bank has been trimming its bond buying by ¥400 billion every quarter since last summer, but recent pressure from rising yields has likely made further cuts too risky.
- Sakurai noted that authorities are concerned continued reductions could push yields higher, making it harder to manage the economy and government debt.
