The Bank of Japan has announced that it will cut corporate bond and other securities markets, and is joining a group of central banks that are phasing out pandemic-related emergency measures.
The central bank stressed that from April, it will reduce its participation in commercial securities and corporate bonds to 5 trillion. About yen (43.97 billion dollars) against the previous limit of 20 trillion. Yen.
The decision restores the level of participation in assets, to the point where it was at the beginning of the pandemic in 2020.
“Financial conditions in Japan have improved overall,” the bank said.
“In corporate bond markets, which are important sources of financing for large corporations, issuance conditions have been extremely favorable,” Central Bank Deputy Governor Masayoshi Amamiya said in a speech earlier this month.
Despite Friday’s decision, the BoJ insists on its extremely loose monetary policy because the country still looks unaffected by global inflationary pressures.
In October, total prices in Japan increased by 0.1% in the corresponding month of the previous year. Excluding vulnerable food and energy categories, prices fell 0.7%.
Also, the Bank of Japan kept the target for short-term interest rates at -0.1% and for zero yield on 10-year bonds.
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Source From: Capital
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