The Bank of Japan is mulling a new monetary easing scheme centered on the idea of integrating two bond-buying programs to achieve its 2 percent inflation target, sources familiar with the plan said Sunday.
The idea, aimed at clarifying the central bank's actions and enhancing its economic impact, will be discussed Wednesday at the BOJ's first policy meeting to be chaired by new Gov. Haruhiko Kuroda, the sources said.
The BOJ is buying long-term Japanese government bonds in two ways: through regular market operations and through an asset-purchasing fund launched by former BOJ Gov. Masaaki Shirakawa in 2010. The idea is to flood the market with liquidity to lower interest rates, promote lending and stimulate the economy.