BOJ Faces Pressure from Takaichi Amid Rising Japanese Bond Yields
Japanese Prime Minister Sanae Takaichi has urged the Bank of Japan (BOJ) to take steps to stabilize the Japanese bond market, amid rising long-term yields. According to reports, Takaichi asked BOJ Governor Kazuo Ueda to increase government bond purchases if necessary during a meeting last May.
Takaichi reportedly requested that the central bank 'take appropriate measures to stabilize the market' and increase bond purchases if required. In response, Ueda stated that the BOJ must consider market responses before taking further steps, but affirmed that the central bank is ready to act if needed.
The request comes as the BOJ normalizes its monetary policy, having begun reducing government bond purchases in July 2024 to end large-scale stimulus and revive bond market activity. However, last June the BOJ decided to temporarily halt this process starting next April, maintaining monthly purchases of around 2 trillion yen or about $12.68 billion in Japanese Government Bonds (JGB).