Analysts on the mooted BOJ 'unlimited' JGB buy plan

Author: Eamonn Sheridan | Category: Central Banks

Speculation the Bank of Japan will ease policy further next week, Adam had the headline overnight:

QE-finity: BOJ to remove bond-buying limit
  • In a nutshell the news is the Nikkei reported the BoJ will discuss allowing unlimited government bond purchases, while keeping the 10-year target at 0%.
I posted on what I thought of this (spoiler - its a meaningless step if the BOJ take it)

A few comments from analysts:

Mizuho Securities:
  • BOJ's 80 trillion yen target has long lost substance
Sumitomo Mitsui:
  • Should BOJ decide to adopt unlimited bond buying, the actual effect of such a step would be marginal
BNZ:
  • would have no impact on the market at the moment, with the Bank achieving the yield target easily.



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