MNI BRIEF: BOJ To Review JGBs, Consider Market View - Ueda

The Bank of Japan will conduct an interim assessment of its bond tapering plans at the June 16-17 policy meeting, taking market participants’ views into account when deciding the course of JGB purchases, Governor Kazuo Ueda told lawmakers Tuesday.

He noted there has been no request to revise the planned reduction of JGB buying by JPY400 billion per quarter through March 2026. However, he acknowledged that market participants hold varying views on tapering beyond April 2026. (See MNI POLICY: BOJ Could Buy More JGBs, Keep Lowering Holdings)

BOJ Executive Director Kouji Nakamura attributed the recent rise in super long-term JGB yields to unwinding by market participants and speculation over the government’s fiscal outlook. 

BOJ officials held meetings with banks, securities firms, and insurers on May 20-21 to gauge sentiment.

Ueda maintained that recent high CPI readings, driven by past import price hikes and rising rice costs, will likely ease. He reiterated that underlying inflation remains below 2%, warranting continued monetary easing.