From next month, the Bank of Japan will increase the amount of government bond purchases that it regularly purchases as part of its monetary easing policy.
The aim is to curb the rise in long-term interest rates by purchasing a large amount of government bonds.
As part of its current monetary policy, the Bank of Japan plans to adjust long-term interest rates to around 0%, specifically to a fluctuation range of "plus or minus 0.25%."
However, as the US has recently shown a positive attitude toward raising interest rates, the upward pressure on long-term interest rates has increased, so the Bank of Japan will buy government bonds at the specified yield for three days until the 31st. By taking measures called "continuous limit operation", we suppressed the rise in interest rates.
Under these circumstances, the Bank of Japan has announced that it will increase the amount of regular purchases of government bonds from next month onward.
Specifically, for government bonds with a maturity of 10 years, which is an indicator of long-term interest rates, we will increase the amount by 75 billion yen to 500 billion yen each time.
We will also increase the purchase amount of medium-term and ultra-long-term government bonds with different maturities, and increase the total purchase amount for one month by 650 billion yen.
Government bonds and interest rates are related to the fact that interest rates fall when government bonds are bought, and the aim is to curb the rise in interest rates by buying a large amount of government bonds.
The Bank of Japan will continue to take necessary measures in response to trends in long-term interest rates.