JPMorgan: The Bank of Japan is expected to signal a shift in QT pace this week.

GoldenOctober2024

On June 16, the market widely expects the Bank of Japan to continue to keep the current policy rate unchanged at 0.5% this week. The focus of the market is on whether it will adjust its current plan to gradually taper the pace of Japanese government bond purchases. According to the current policy, the Bank of Japan plans to reduce the size of government bond purchases by 400 billion yen per quarter, and the plan will continue until March 2026. Central Bank Governor Kazuo Ueda previously said that after the end of the yield curve control (YCC) policy, the yield of government bonds should be determined by the market. JPMorgan Chase & Co. expects the BOJ to taper its bond purchases at its current pace until March 2026, and then may slow the tapering to 200 billion yen per quarter and gradually reduce its monthly bond purchases to about 2.1 trillion yen by March 2027, after which it may stop further tapering.

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Fahmizakiesvip
· 2025-06-16 08:25
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Fahmizakiesvip
· 2025-06-16 08:25
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