BOJ keeps shortterm rate target unchanged at 00.1
Board keeps bond buying pace at 6 trln yen per month
BOJ to lay out details on bondtaper plan at July meeting
Yen, Japan yields fall on view BOJ cautious on policy
Governor Ueda to brief media at 0630 GMT

TOKYO, June 14 Reuters The Bank of Japan said on Friday it would start trimming its huge bond purchases and announce a detailed plan next month on reducing its nearly 5 trillion balance sheet, taking another step toward unwinding its massive monetary stimulus.

While it will continue to buy government bonds at the current pace of roughly 6 trillion yen 38 billion per month, the central bank decided to lay out details of its tapering plan for the next one to two years at its July meeting.

The plan to slow bond purchases was widely anticipated, however, the lack of immediate details was seen by some investors as an indication the central bank will be cautious in adjusting monetary policy going forward. That dovish market interpretation sent the yen and Japanese bond yields lower.

Today39;s decision suggests that the BOJ is very careful about reducing the bond buying amounts, which means the central bank is also cautious about raising rates, said Takayuki Miyajima, senior economist at Sony Financial Group. It has become less likely that the BOJ will raise rates in July.

The BOJ said it will collect views from market players, before deciding on the longterm tapering plan at its next meeting.

As widely expected,…