Confirms it will reduce purchases of govt bonds (Il Sole 24 Ore Radiocor) - Tokyo, 14 Jun - The Bank of Japan said that its Policy Board has left interest rates unchanged and confirmed plans to reduce the purchase of Japanese government bonds (JGBs) The Policy Board decided, by a unanimous vote, to encourage the uncollateralized overnight call rate to remain at around 0 to 0.1%.

Regarding purchases of JGBs, commercial paper and corporate bonds for the intermeeting period, the central bank will conduct the purchases in accordance with its decision made in March, it added During the March monetary policy meeting (MPM), the bank decided, by an 8-1 majority vote, that it would reduce its purchase amount of JGBs to ensure that long-term interest rates would be formed more freely in financial markets.

It added that it "will collect views from market participants and, at the next MPM, will decide on a detailed plan for the reduction of its purchase amount during the next one to two years or so.".

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(RADIOCOR) 14-06-24 08:13:47 (0113) 5 NNNN