Bank of Japan confirms negative rates, but launches tapering corporate bond and commercial paper purchases

The BOJ – Bank of Japan, the central bank of Japan led by Haruhiko Kuroda – has announced that it has confirmed the target of short-term interest rates at -0.1%, and the target of 10-year government bond rates around to zero. However, the institution has announced the launch of the tapering of its purchases of corporate bonds and commercial paper, thus deciding to reduce the support measures launched with the explosion of the Covid-19 pandemic. Starting next April, the BoJ will gradually reduce purchases of corporate bonds and commercial paper, bringing them back to pre-pandemic levels.