Bank of Japan in no rush for the exit

The Bank of Japan’s silence on when it will end its purchases of bank-owned corporate debt is being interpreted by some as a lack of faith in the recovery and by others as a response to government pressure. To our mind, it was simply too soon to expect an announcement. The special measures that are now increasingly redundant are likely to be withdrawn at the end of the year, but the most important monetary stimulus in the form of near-zero interest rates and large outright purchases of government bonds will continue for the foreseeable future.