- BoJ is expected to raise its CPI projection for FY2022 to the low 1% range
Market news
BoJ is expected to raise its CPI projection for FY2022 to the low 1% range
“The Bank of Japan's government debt holdings have fallen for the first time in 13 years as the central bank quietly adjusts its massive bond-buying program in the face of looming financial risk,” said Nikkei while conveying details of the Bank of Japan’s (BOJ) stealth taper during early Thursday morning in Asia.
Key quotes
The BOJ's balance of Japanese government bonds totaled 521 trillion yen ($4.49 trillion) at the end of 2021, according to data released Wednesday, down 14 trillion yen from a year earlier.
After current Gov. Haruhiko Kuroda took the post in 2013, he oversaw a vast expansion of a quantitative easing policy meant to boost deflation-mired Japan's money supply and quickly achieve 2% inflation.
The BOJ still stands by its 'quantitative and qualitative' policy, its only plan for achieving 2% inflation.
FX implications
USD/JPY defends 116.00, around 116.10 by the press time, as the news allowed the yen pair to consolidate recent gains. However, firmer yields keep buyers hopeful.
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