BOJ Monetary Policy Navigator

We question likelihood of cuts to BoJ bond purchases to bolster yen

• 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