BOJ October Bond Plan Takes Stealth Out of Stealth Tapering
- Central bank cut planned purchase range for super-long debt
- Move followed July announcement that it will be more flexible
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It’s been fashionable to refer to the Bank of Japan’s slow reduction of its debt purchases as “stealth tapering.” The word "stealth” is looking more and more unnecessary.
The October plan -- where the BOJ made its first cut in purchase ranges for bonds due in more than a year since August 2017 -- means the tapering is becoming clear to the most skeptical observer. The announcement follows a set of tweaks introduced in July to extend the longevity of its stimulus program.