Market to scrutinize BOJ for signs of quantitative tightening

TOKYO -- The Bank of Japan meets this Thursday and Friday amid expectations it will respond to the weakness of the yen with a reduction of its bond purchases, reversing a decade-long campaign to stimulate the economy through an expansion of its balance sheet.

The central bank's next policy meeting will be a key test for Gov. Kazuo Ueda's ability to work with both the market and the government after he caused a big swing in the currency market with his remarks following the previous policy meeting on April 25 and 26.