Japan’s central bank lowers limits on CP, corporate bond purchases

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FILE PHOTO: A man wearing a protective mask stands in front of the headquarters of Bank of Japan amid the coronavirus disease (COVID-19) outbreak in Tokyo

TOKYO – The Bank of Japan (BOJ) said on Friday it had decided to reduce the maximum amounts of commercial paper (CP) and corporate bonds it can buy in a single issuer’s outright purchase for the April-September period.

The BOJ set a single issuer’s outright CP purchases at 100 billion yen ($868 million), and a single issuer’s outright corporate bonds purchases at 250 billion yen, the central bank said in a statement.

The disclosure follows an announcement by the BOJ in December that it will end in March increased purchases of CP and corporate bonds that it rolled out in 2020 in response to the coronavirus pandemic.

($1 = 115.2600 yen)

(Reporting by Daniel Leussink; Editing by Chang-Ran Kim)