BOJ sets aside maximum provision of losses for bond transactions
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FILE PHOTO: Japanese national flag hoisted atop of the Bank of Japan headquarters is seen through trees in Tokyo, Japan January 23, 2025. REUTERS/Issei Kato/File Photo
(Reuters) -The Bank of Japan has set aside the maximum provision for losses on bond transactions, a spokesperson for the central bank said on Monday.
The level of the provision for possible losses on bond transactions was 100% for fiscal 2024, the spokesperson said in an emailed response to Reuters.
The moves come as the Japanese central bank faces mounting pressure to keep hiking borrowing costs, after it kept short-term interest rates steady in its May meeting.
The BOJ has usually kept a target of provision for losses on bond transactions around 50% of gains or losses from the transactions.
The Nikkei first reported BOJ setting aside maximum provision for losses on bond transactions earlier on Monday.
The provisions are funded with income from bond and other transactions, the Nikkei newspaper reported.
(Reporting by John Biju and Sneha Kumar in Bengaluru; Additional reporting by Nikita M. Jino; Editing by Nia Williams and Sam Holmes)
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