The Bank of Japan has decided to suspend the reduction of bond purchases starting from July next year Golden Finance reported that on June 16, the Bank of Japan said that at the monetary policy meeting held today, the Policy Committee of the Bank of Japan reviewed the development and operation of the treasury bond market in Japan, and discussed the policy of purchasing treasury bond in the future. In principle, the long-term interest rate should be formed by the financial market, so it is appropriate for the central bank to purchase treasury bond in a predictable way, while retaining sufficient flexibility to support the stability of the treasury bond market. Based on this idea, in order to improve the operating efficiency and stability of the treasury bond market, the Central Bank decided to take the following measures with a majority vote of 7 to 1: the Central Bank will reduce the planned monthly purchase quota of Japanese treasury bond of about 200 billion yen every natural quarter in principle between now and January to March 2027. From April 2027, its monthly purchase quota of Japanese treasury bond will remain at about 2 trillion yen. If long-term interest rates rise rapidly, the Bank of Japan will take flexible response measures, such as increasing the purchase scale of Japanese treasury bond, carrying out fixed rate purchase operations of Japanese treasury bond (both operations are not limited by the monthly purchase plan of Japanese treasury bond), and carrying out fund supply operations targeting collective guarantee. In addition, the Bank of Japan will not conduct mid-term evaluation on the direct purchase plan of Japanese treasury bond in the future. However, at the monetary policy meeting, the central bank is prepared to adjust the purchase speed of Japanese treasury bond when necessary according to the basic idea of Japanese treasury bond purchase and other factors such as the market trend of Japanese government bonds. (Golden Ten)