BOJ goes slowly in move to quantitative tightening

key takeaways
  • The Bank of Japan announced on 14 June that it would begin scaling back its government bond purchases but would announce a more detailed plan in July.
  • BOJ Governor Ueda Kazuo would like to move towards more market-determined interest rates but has to proceed cautiously in light of government concerns about a sharp increase in rates – while also being mindful of the continuing impact of yen weakness.

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