Gradually slow the pace of bond purchases to pre-pandemic levels after April 2022


After April 2022, the Bank of Japan (BOJ) will gradually slow the pace of purchases of commercial paper and corporate bonds to pre-pandemic levels, the central bank said in its monetary policy statement.

Additional takeaways

Will end in March 2022 increase in purchases of corporate bonds, commercial paper.

Ready to take additional easing measures as needed taking into account the impact of the pandemic on the economy.

Extend by 6 months the portion of the pandemic relief funding where the BOJ provides funds against non-government-backed loans that financial institutions provide to small businesses.

For loans that the BOJ grants against government-backed bank loans, the BOJ will extend the period by 6 months under revised terms.

Japan’s economy picked up as a trend, although it remained in dire straits due to the impact of COVID-19 at home and abroad.

The annual rate of the consumer price index excluding fresh produce is expected to increase moderately into positive territory in the near term, reflecting rising energy prices.

The Japanese economy is expected to recover as the downward pressure from COVID-19 on the consumption of services and the effects of supply-side constraints ease.

The year-on-year rate of change of the consumer price index excluding fresh produce is expected to gradually increase in trend.

Attention should be paid to the risk that the effects of supply-side constraints observed in some regions may be amplified or prolonged.


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