Japan politicians extend BoJ bond buying program

First the Bank of Japan governor hinted to the end of this program at a G7 meeting, but now Japanese politicians are debating the wisdom of ending the program. The Central Bank has autonomy, but it requires certain support from the government. The new government seems to carry on the tradition of the old government to dismiss facts and figures from the BoJ and does not agree on the timeline to the recovery.

THE Bank of Japan’s policy board is likely, though not certain, to take its first small step today towards policy normalisation by confirming it will cease outright purchases of commercial paper and corporate bonds in December.

The decision ought to be straightforward because demand for this support has faded into insignificance since mid-year, as markets for raising corporate debt and equity have recovered to something approaching normalcy.

The Australian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza