We question likelihood of cuts to BoJ bond purchases to bolster yen
Key points
- Market and media attention focused on possibility of early BoJ rate hikes or reductions in its bond purchases to curb yen weakness
- We question whether downward adjustments to purchases within published offer range -- which are for addressing problems in market functioning or JGB supply/demand -- would be used to stem decline in yen
- BoJ discussions on reducing its bond holdings (QT) are carried out separately from its assessments of economic activity and prices, making decisions linked to exchange rates unlikely
