The Bank of Japan is set to decide by how much it will reduce purchases of government bonds and whether to implement another interest rate hike at its two-day policy meeting from Tuesday, with the yen’s sharp depreciation complicating its room for maneuver. The BOJ has made clear that it intends to taper bond buying, one of the major pillars of monetary easing over the past decade that has left borrowing costs extremely low and weakened the yen. The Policy Board will detail a reduction plan at its meeting, with markets expecting the central bank’s monthly purchases could fall to around half th…