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"
