BOJ Maintains Rates and Slows Bond Tapering Amid Emerging Risks
The Bank of Japan (BOJ) kept its short-term interest rate at 0.50% and announced a gradual reduction in its monthly Japanese Government Bond (JGB) purchases, with no surprise changes to policy. The decision was unanimous, with a dissenting vote suggesting allowing market-determined long-term rates. The BOJ emphasized its commitment to market stability amid moderate economic recovery and risks from global and domestic factors, indicating no immediate plans for rate hikes, possibly delaying further policy adjustments until January 2026.