Brocker.Org: Moody’s: BOJ emerging as main source of affordable funding for government – RTRS

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The US based ratings agency, Moody’s Investor Service, is out with its latest review report on the Bank of Japan (BOJ).

Key Points via Reuters:

Bank of Japan emerging as main source of affordable funding for government

Structural factors weighing on net savings rates will constrain private sector’s capacity to fund new government debt in future

Share of its government bond market will continue to trend upward

Abrupt shift to sales of its government bond holdings would expose government to risk of material but gradual weakening in debt affordability

View is that the central bank will pare down its bond purchases very gradually

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