The Wall Street Journal: BOJ doesn’t need to sell government bonds yet, Kuroda says

TOKYO — Bank of Japan Gov. Haruhiko Kuroda said Thursday that the central bank doesn’t have to cut back on its government bond holdings at the moment, denying speculation that the BOJ’s new policy framework may prompt monetary tightening.

“I don’t think there will be the need for the BOJ to sell or reduce the amount of JGB holdings any time soon to maintain a goal of guiding (long-term rates) around zero percent,” Kuroda said in a parliamentary committee.

While Kuroda said he doesn’t plan to alternate the long-term rate target for now, he said it is possible that the BOJ, in the future, won’t have to increase the balance of its JGB holdings by 80 trillion Japanese yen every year.

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