Bank of Japan Vows ‘Nimble Response’ After Surge in Long-Term Bond Rates
- The Bank of Japan maintained its short-term interest rate at 0.5% and announced on June 17, 2025, that it would reduce the speed of its government bond buying starting in April next year in Tokyo.
- The decision aligns with the bank's previous plan to scale back government bond acquisitions by roughly 400 billion yen every quarter until March 2026, after which the pace of reduction will ease to about 200 billion yen quarterly.
- The BOJ aims to improve Japanese government bond market functioning and maintain stability amid growth uncertainties, high inflation above 3%, and external risks like US tariffs and Middle East conflicts.
- Governor Kazuo Ueda stated the bank will continue rate increases once there is conviction inflation sustainably approaches the 2% target, while monthly JGB purchases will be about 4.1 trillion yen through June 2025.
- The cautious approach to reducing stimulus suggests the BOJ plans a nimble response to market conditions, balancing inflation control and economic recovery amid external uncertainties.
30 Articles
30 Articles
Bank Of Japan Holds Rates, Says To Slow Bond Purchase Taper

Bank of Japan holds rates, says to slow bond purchase taper
The Bank of Japan kept interest rates unchanged Tuesday and said it would taper its purchase of government bonds at a slower pace amid concerns about the effect of trade uncertainty on the world's number four economy.
Third consecutive session without raising. It weighs the climate of international uncertainty. Announced a braking of the tapering on the purchases of government bonds
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Japan’s central bank on Tuesday said it would slow the pace of government bond purchases from April next year, while it also held its benchmark rate at 0.5% amid rising growth risks. The Bank of Japan, whose rate decision was in line with expectations from economists polled by Reuters, reiterated it would continue reducing its monthly purchases of Japanese government bonds by about 400 billion yen ($2.76 billion) per quarter to about 3 trillion …
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