Reported 7 months ago
The Bank of Japan may offer guidance on reducing its $5 trillion balance sheet at an upcoming policy meeting, signaling a slow retreat from massive monetary stimulus. Possible ways for quantitative tightening (QT) include tapering bond purchases or offering vague language on future reductions. With inflation surpassing 2%, the BOJ plans to raise interest rates and reduce its balance sheet to maintain economic stability, but must avoid sharp yield spikes due to Japan's high public debt. Unlike the Fed, the BOJ aims for gradual tapering with ongoing communication to reassure markets and prevent disruptions.
Source: YAHOO