Japan’s largest banks called on the Bank of Japan (BOJ) to make deep cuts to its monthly bond purchases during hearings of market participants at the central bank, according to people who attended.
One megabank said the BOJ should move early to make sharp cuts to its bond buying, while another major bank recommended an eventual reduction to monthly purchases of ¥1 trillion ($6.2 billion), the people said. A third megabank said the buying should be halved from the current monthly level to ¥3 trillion, the people added.
The views of regional banks on the scale of bond reductions were more cautious, the people said. Some brokerages called on the BOJ to trim its purchases to ¥3 trillion from August, while some other brokerages recommended that mark be reached after a year, the people added.