BOJ Monetary Policy Navigator

BoJ reduces bond purchases and raises rates in tandem, adopting hawkish policy guidelines

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BoJ reduces bond purchases and raises rates in tandem, adopting hawkish policy guidelines

Key points
  • BoJ accompanies release of detailed plan for reducing JGB purchases with surprise rate hike
  • Size and pace of cuts in bond purchases did not upset market; plan enhances predictability of buying operations while maintaining flexibility
  • Bank expresses view that real interest rates are at "significantly low levels" and emphasizes intention to "continue to raise the policy interest rate"

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