Bank of Japan Governor Kazuo Ueda said on Thursday reducing the scale of the BOJ's JGB purchases would be appropriate without elaborating on specifics.

Ueda told lawmakers that the Bank is monitoring the impact of March’s decisions on financial markets and added that it is appropriate to reduce the scale of bond buying in the process of phasing out large-scale easy policy. (See MNI POLICY: BOJ Board Weighs Pace, Scale Of JGB Reductions)

He added that price expectations must stabilise around 2% for the Bank to achieve its 2% inflation target.