As the BOJ considers a plan to reduce its government bond purchases, market participants are divided over whether purchases should continue or be suspended. The policy may be reaffirmed at the next monetary policy meeting in May.
Opinions are divided over the extent to which the BOJ should reduce its government bond purchases. Market participants are deepening discussions over the scale and timing of the reduction and are closely watching the issue as a factor that could affect the outlook for monetary policy.
Reports indicate that some market participants favor continuing purchases, while others believe purchases should be suspended or reduced as necessary. There is also a view that these differences of opinion could affect market interest-rate trends and the level of long-term interest rates.
The focus will be on how the BOJ sets out its future policy at the May meeting. Market participants are waiting for the meeting statement and indications of the policy path, and intend to assess whether the government bond purchase policy will be maintained or adjusted.