Takaichi Urges BOJ to Buy More Bonds Amid Rising Yields

Japanese Prime Minister Sanae Takaichi met with Bank of Japan Governor Kazuo Ueda in May to discuss monetary policy. Takaichi asked Ueda to take 'appropriate steps' to stabilize markets and increase bond buying if necessary, according to Jiji news agency.

Takaichi expressed concern that the BOJ's slowing bond buying may be driving up already rising yields. Ueda replied that the central bank needs to consider market reaction to such measures but will respond when circumstances require.

The meeting comes as the BOJ has been gradually slowing its bond buying since July 2024, aiming to wean the economy off massive stimulus and breathe life back into a market made dormant by its huge presence. The central bank recently suspended the taper process from April next year and will continue buying roughly 2 trillion yen ($12.68 billion) in Japanese government bonds (JGB) each month.