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BOJ cuts maximum limit of JGB purchase amount after major policy shift
The Bank of Japan (BOJ) will scale back the maximum limit of its purchases of Japanese government bonds, it said on Tuesday, after ending its radical stimulus policies of negative interest rates and yield curve control (YCC). The BOJ has been an aggressive bond buyer to defend its ultra-low rate policy. That has pushed its ownership to more than half the market, putting a squeeze on liquidity and impairing market function. In its monetary policy statement, the bank said it will continue its JGB purchases at broadly the same amount as before. However, it also made cuts to the stated maximum limit of bond purchase ... (full story)