BOJ Reduces JGB Purchase Limit After Policy Shift

Japanese national flag waves at the Bank of Japan building in Tokyo

The Bank of Japan (BOJ) has made a significant policy shift by reducing the maximum limit of Japanese Government Bonds (JGB) purchases. This decision comes as the central bank aims to address concerns about the sustainability of its massive stimulus program.

Previously, the BOJ had been purchasing JGBs without a specified limit as part of its efforts to stimulate the economy and achieve its inflation target. However, the new policy change will see the central bank capping the amount of JGB purchases it makes.