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BOJ may switch from QE to project funding

It could start buying local govt and other bonds that fund infrastructure projects after its Sept meeting: analysts

Published Mon, Aug 29, 2016 · 09:50 PM

Tokyo

FORGET helicopter money. The Bank of Japan (BOJ) might next target financing a bit closer to the ground - trains, hospitals, power plants and sewers.

That's the view of some analysts who say the central bank may start buying bonds of local governments and public corporations that fund such projects after its Sept 20-21 meeting. That would stop short of direct financing of fiscal spending.

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