Archive · 19 May 2025

Japan's Fiscal Concerns Impact BOJ's Bond Tapering Plans

Japan's Fiscal Concerns Impact BOJ's Bond Tapering Plans

Japan's central bank, the BOJ, is deciding how to reduce its bond buying program.

Bond yields for very long-term bonds have gone up, raising concerns about the country's financial situation.

The BOJ will review its current plan to slowly reduce bond purchases, but the rising yields and worries about Japan's debt could change the plan.

Some experts suggest the BOJ might slow down the rate at which it reduces its bond purchases to avoid causing problems in the market.

This situation is made trickier by political pressure to spend more money, which could increase Japan's debt further.

Sources