BOJ Monetary Policy Navigator

Key point for BoJ bond purchase reduction plan is how it gets to zero

• Now that BoJ has officially decided to reduce its JGB purchases, market focus has shifted to size of reductions in "detailed plan"
• With end to large-scale easing policies eliminating need for bond purchases, we think BoJ will eventually want to discontinue all purchases
• Bank may indicate possibility of taking purchases down to zero by end of plan