Svmuu News Bank of Japan (BOJ) reports that at today’s monetary policy meeting, the Bank of Japan (BOJ)’s Policy Board reviewed developments and conditions in the Japanese government bond market and discussed future guidelines for government bond purchases.In principle, long-term interest rates should be determined by financial markets; therefore, it is appropriate for the central bank to conduct government bond purchases in a predictable manner, while retaining sufficient flexibility to support the stability of the government bond market. Based on this approach, and to improve the operational efficiency and stability of the government bond market, the central bank decided by a 7-to-1 majority to implement the following measures:From now until the January–March 2027 period, the Bank will, in principle, reduce the monthly purchase target for Japanese government bonds by approximately 200 billion yen per calendar quarter.Starting in April 2027, the monthly purchase limit for Japanese government bonds will be maintained at approximately 2 trillion yen.If long-term interest rates rise rapidly, the Bank of Japan (BOJ) will take flexible countermeasures, such as increasing the scale of JGB purchases, conducting fixed-rate JGB purchase operations (both of which are not subject to the limits of the monthly JGB purchase program), and conducting liquidity-providing operations targeting pooled collateral. Furthermore, Bank of Japan (BOJ) will not conduct a mid-term review of the direct purchase program for Japanese government bonds in the future. However, the central bank is prepared to adjust the pace of Japanese government bond purchases at monetary policy meetings when deemed necessary, based on the basic approach to Japanese government bond purchases and other factors such as market trends. (Jinshi)