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 yen until March 2026, as outlined in its plan last year.
It will then slow the cuts to 200 billion yen per quarter from April 2026 to March 2027.
The central bank will conduct another interim assessment at its June 2026 monetary policy meeting.
Last week, BOJ Governor Kazuo Ueda reportedly told Japan’s parliament that the central bank will continue to raise rates “once we have more conviction that underlying inflation will approach 2% or hover around that level.”
