The BOJ owned more than 50 percent of outstanding Japanese governments bonds as of the end of 2022. Critics say the central bank is effectively financing the government’s funding requirements.

Still, the Fed’s experience points to potential risks ahead for the BOJ as it tries to reduce its balance sheet without spooking markets. The Fed started tightening in 2022, but in June last ...

saying that it was in the right direction and called for the need to shrink the BOJ's massive balance sheet. In a separate commentary written in 2022, she had warned of the cost of prolonged ...