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BOJ reserve payments threaten to break bank

Interest may exceed bond income as central bank exits from quantitative easing

Mr Iwata says that the market value of BOJ's ETFs and Reits could fall below book value.


THE Bank of Japan (BOJ) is flagging a source of losses as it plots an exit from bond-buying stimulus: a surge in the interest it pays banks for their reserves.

Deputy governor Kikuo Iwata said last week that there is potential for those payments to exceed income on the