TOKYO, June 17 Reuters The Bank of Japan is likely to trim its monthly bond buying by around 2 trillion yen 12.7 billion in new guidance due next month, but forgo raising interest rates at least until September, former board member Makoto Sakurai said on Monday.

At its policy meeting on Friday, the BOJ decided to start trimming its huge bond purchases and announce a detailed plan in July on reducing its nearly 5 trillion balance sheet, taking another step toward unwinding its massive monetary stimulus.

Governor Kazuo Ueda gave few clues on how much the BOJ will actually trim its bond buying, saying only that the taper size will be significant.

The BOJ has the option of reducing its monthly purchase amount by just one trillion yen. But with the governor having said the size would be 39;significant,39; there39;s a good chance it will taper by around 2 trillion yen, Sakurai told Reuters in an interview.

The BOJ currently buys roughly 6 trillion yen of government bonds per month with an allowance of 57 trillion yen.

The BOJ39;s decision to announce its bondtapering plan at its next meeting in July 3031 has heightened uncertainty on whether it will hike shortterm interest rates at the same meeting, or hold off until later in the year to avoid upending markets.

Sakurai, who retains close ties with incumbent policymakers, said the BOJ will likely forgo raising rates in July and wait for more clarity on whether summer bonus payments and wage gains will help consumption…