Bank of America analysts expect the Bank of Japan (BOJ) to continue scaling back its purchases of Japanese Government Bonds (JGBs), according to a recent research note. The central bank is anticipated to provide an interim update on its JGB tapering strategy at its next policy meeting on June 16–17.
BofA projects the BOJ will reduce its monthly JGB buying by 400 billion yen each quarter through March 2026, then slow the pace further to 300 billion yen per quarter from April 2026, with the reductions likely extending for another year.
This article was written by Eamonn Sheridan at www.forexlive.com.
