[Sources: Bank of Japan Considers Halting Bond Purchase Reductions from Next Fiscal Year and Raising Rates in June] Jin10 News, June 9 – According to informed sources, the Bank of Japan (BOJ) is considering maintaining its current government bond purchase scale unchanged starting from the next fiscal year. However, this decision may not come easily, as opinions within the policy committee appear divided. Some members prioritize calming market sentiment, while others believe it is necessary to steadily reduce bond purchases to shrink the central bank's massive balance sheet. At the June meeting, the BOJ will evaluate the current bond purchase reduction plan (which lasts until March next year) and formulate a new plan for the fiscal year 2027 and beyond. Four sources familiar with the central bank's thinking stated that, given the progress already made in reducing the balance sheet, the BOJ is leaning toward pausing further bond purchase reductions. One of the sources mentioned that the BOJ actually has the capacity to pause reductions, as the maturity of existing bonds alone would significantly lower its holdings. The other three sources expressed similar views. The sources also revealed that the BOJ might abandon its practice of setting annual reduction plans and instead adopt an open-ended framework, committing to continuous bond purchases at a scale of ¥2.1 trillion per month. In addition to decisions on quantitative tightening, the market expects the BOJ to raise the short-term policy rate from 0.75% to 1% at next week's meeting.