Bank of Japan policymakers disagree on the pace of tapering JGB purchases as yields climb, complicating its exit strategy.
Bank of Japan officials are divided over the pace of reducing Japanese government bond purchases, with monthly buying currently at ¥2.1 trillion. Rising yields have intensified debate, as some argue for maintaining or gradually cutting purchases, while others push for sharper reductions or eventual elimination of the program.
The BoJ began tapering its bond-buying in 2024 after ending negative interest rates and yield curve control. Proposals range from quarterly cuts of ¥100 billion to reducing purchases to ¥1.3 trillion or zero, with liquidity concerns and market stability shaping discussions.
No immediate market reaction was reported, but the divergence highlights challenges in balancing normalization with financial stability.