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BOJ’s Tightrope: Tapering amid fiscal pressure and bond market strain – Key Concern

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May 16, 2025
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BOJ’s Tightrope: Tapering amid fiscal pressure and bond market strain – Key Concern
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The Bank of Japan remains on a cautious path toward policy normalisation. With rising long-term yields and fiscal uncertainty, it must balance credibility, flexibility, and market stability. Sustained investor confidence in Japan’s fiscal outlook will be key to supporting a smooth tapering process.

(Disclaimer: This slideshow has been sourced from Reuters)

Tags: Bank of JapanBOJ policyBOJsbondbond taperingConcernfiscalfiscal pressureJapanese economyJGB yieldskeyMarketPressurequantitative tighteningstrainsuper-long bondstaperingTightrope
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