Japan Financial Research Report
 
  Review of the BOJ’s JGB Purchases
 
Pace of Increase in BOJ’s Holding of JGBs Slowing
- Does the purchase limit risk still remain?
(23/May/17)

  JCER Financial Research Team
   Ikuko FUEDA-SAMIKAWA (Principal Economist)
   Tetsuaki TAKANO (Economist)

  The pace of increase in the outstanding long-term Japanese government bonds (JGBs) held by the Bank of Japan (BOJ) is slowing. The BOJ Governor Haruhiko Kuroda told the House of Representatives’ Financial Affairs Committee Meeting on May 10 that the increase in the amount outstanding of its JGB holdings is “now at around 60 trillion yen per year.” Since the BOJ announced in its latest monetary policy statement that it “will conduct purchases more or less in line with the current pace -- an annual pace of increase in the amount outstanding of its JGB holdings at about 80 trillion yen,” Kuroda insisted again that its JGB purchase amount was merely a goal. In September 2016, the BOJ introduced new policy framework called “Quantitative and Qualitative Monetary Easing with Yield Curve Control (YCC)” and changed its operation target from “volume of monetary base” to “interest rate.” As a consequence, the amount of the BOJ’s JGB purchases became “dependent variable,” endogenously determined by economic and financial market trends. In this report, we look at the BOJ’s purchases of JGBs since September 2016.

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Back Numbers of Japan Financial Report
No.33: Narrowing Monetary Policy Options
- Can FTPL be an effective means of escaping deflation? (7/APR/17)
No.32: BOJ's JGB Purchasing Limits to be Reached in Summer 2017
- Is the Bank carrying out Fiscal Policy? (28/NOV/16)
No.31: From Quantity to Interest Rate Focus: BOJ Drops Monetary Base Target
- Flexible JGB Buying Added as Long-Term Interest Rate Policy Focus (21/SEPT/16)
No.30: Risks and Challenges for BOJ after breaking through ZLB
- Accelerate move toward establishing a "Cashless Society" (13/APR/16)
No.29: Risks from Extending the QQE Policy
- Bank of Japan’s JGB Purchases to reach Limits in June 2017(27/JAN/16)
No.28: Surprise Supplementary Measures for QQE Announced
- BOJ plays down Concerns over JGB Purchasing Limits?(21/DEC/15)
No.27: Plunge in New Housing Starts Means Existing Homes Market Expansion Is Key(JAN/15)
No.26: Regional Finance in an Age of Population Decline(JAN/15)
No.25: Quantitative and Qualitative Monetary Easing Effects and Associated Risks(DEC/13)
No.24: Opportunities and Risks for Japan's Financial Industry to Ensure Growth(APR/13)
No.23: Financial Markets Grope for Stability and Growth:Nagging Impaired Loan Assets, Currency Worries(APR/12)
No.22: Options for Kick-Starting Economy amid Risks of Worsened Deflation(MAR/10)
No.21: Global Crisis Testing Financial Strength of Banks and Life Insurance Firms(NOV/09)
No.20: Deflation Outlook Worse than Nineties(MAR/09)
No.19: The U.S.-Sparked Financial Crisis and the Japanese Financial System(OCT/08)
No.18: Prices and Monetary Policy in Times of Rising Energy Prices(MAR/08)
No.17: From Recovery to Reform:The Future Direction for Regional Banks and Life Insurance Companies(OCT/07)
No.16: The Downside Risks in the Japanese Economy(MAR/07)
No.15: We need to prepare ourselves for higher interest rates(OCT/06)
No.14: Public lenders need tough oversight(MAR/06)
No.13: Postal Privatization in Japan and the Future of Banks and Life Insurers (OCT/05)
(PDF) E1 E2 E3
No.12: China Strikingly Similar to 1971 Japan(MAR/05)
No.11: Japan's Pension Reform and the Current Status of Banks and Life Insurers (OCT/04)
(PDF) E1 E2 E3
No.10: Three downside risks in the economy (MAR/04)
No.9: The Profitability of Japanese Industries: Non-financial Sectors, Banks and Life-Insurance Companies (OCT/03)
(PDF) E1 E2 E3
No.8: Accelerating Deflation and Monetary Policy (MAR/03)
No.7: The deteriorating Japanese financial system (OCT/02)
No.6: Credibility of Government, Corporate, and Banking Sectors in Japan (MAR /02)
No.5: Deflation and Financial System Reform in Japan (OCT /01)
(PDF) E1 E2 E3 E4
No.4: Manipulation of Monetary Policy under Deflationary Economy; Strategy to Revive the Japanese Economy (MAR /01)
No.3: Indicators of health of life insurance companies need tightening (OCT /00) Contents Table
No.2: Bad Loan Problems and the Financial Market (MAR /00)Contents Table
No.1: Exchange Rate Movements And Adjustment of Balance Sheet in Japan (OCT /99)