News Headline Summary

To re-cap Bank of Japan's governer spoke after the Japanese close yesterday and was negative on the bank's direct purchase of government bonds

- Bank of Japan Governor Masaaki Shirakawa expressed a negative view Tuesday on the central bank's direct purchase of government bonds, apparently to counter a policy option touched on by the leader of Japan's main opposition party ahead of a general election next month.

- The step "will have major adverse effects not only on fiscal reconstruction but also on the real economy," Shirakawa said at a news conference in Tokyo, while adding he was speaking about BOJ policies in "general terms."

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Analysis details (23:30)

- Shirakawa's comments are not entirely surprising as he would likely lose a lot of power if the main opposition party, the LDP, come into power, given their push to change the banks law.

20 Nov 2012 - 23:26 - Fixed Income - Source: Kyodo

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