Q&A on detailed BoJ plan for reducing bond purchases
Key points
- Attention is focused on scale and pace of reductions in BoJ bond purchases in upcoming "detailed plan," but there are also many other points to watch
- These include framework for buying operations, maturity profile of purchases, eventual goal of balance sheet normalization, and market’s ability to absorb debt
- Reductions seen influencing market via various pathways including signaling effect, transparency of operations, stock effect, and JGB supply/demand
