BOJ Monetary Policy Navigator

BoJ may present plan for balance sheet reductions sooner than expected

• BoJ's closely watched bond-buying guidelines currently involve keeping bond holdings at around JPY590 trillion
• Other central banks began trimming their balance sheets after they started raising rates; BoJ is currently monitoring financial market developments
• We think Bank could present plan for balance sheet reductions as early as June Policy Board meeting to encourage orderly price formation in JGB market