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A pedestrian passes in front of the Bank of Japan building (BOJ) in the center of Tokyo on July 28, 2023.
Richard A. Brooks | AFP | Getty images
The Japanese central bank said Tuesday that it would slow down the pace of state bond purchases from April next year, while it also held the reference rate to 0.5% in growth risks.
The Bank of Japan, whose rate decision was in line with the expectations of economists interviewed by Reuters, reiterated It would continue to reduce its monthly purchases of Japanese government bonds by around 400 billion yen (2.76 billion dollars) per quarter to around 3 billions of yen until March 2026, as described in his plan Last year.
This will then slow down the 200 billion yen cuts per quarter from April 2026 to March 2027, aimed at reaching a monthly purchase amount of approximately 2 yen billions.
The central bank will carry out another provisional assessment at its monetary policy meeting in June 2026.
The BOJ explained that this decision was aimed at improving “the functioning of the JGB markets in a way that supports market stability”.
Boj should buy around 4.1 Billions of JGBS yen per month DUring the quarter ending in June 2025.
Although the bank indicated that this would reduce reductions in bond purchases, Kazuo Ueda cattle battle Last week would have declared to the Japanese Parliament that the central bank would continue to increase rates “once we have condemned more than underlying inflation will approach 2% or oscillate around this level”.
The Japanese economy faces the uncertainty of growth while inflation has exceeded the objective of BOJ for about three years.
INflation in the country has remained high, partly due to a rice shortage, rice prices have increased and the Japanese government releasing emergency stock prices.
THE Country’s inflation rate For April, it arrived higher than expected at 3.5%, marking more than three years that inflation exceeded the target of 2% of the BOJ.
Japan GDP also decreased 0.2% In the quarter finished in March Compared to the previous period as exports decreased, marking the first time in a year that the economy contracted in the quarter.
