Comments on the Bank of Japan from ratings agency Moody's
- 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
Headlines via Reuters
Hmmm. The Bank of Japan is not monetizing government debt.
K?
Repeat after me ..
NOT
monetizing
government
debt