Tuesday, 02 January 2024 12:17 GMT

Bank of Japan Decelerates Government Bond Purchase Cuts


(MENAFN) The Bank of Japan (BOJ) announced Tuesday that it will decelerate the reduction of its government bond purchases beginning in April 2026, while maintaining its short-term policy interest rate at 0.5%.

Following the conclusion of its extensive monetary easing program in March 2024, the BOJ has been steadily tapering bond acquisitions by 400 billion yen (roughly 2.77 billion U.S. dollars) every quarter.

Starting April 2026, this pace will be cut in half to 200 billion yen quarterly.

Despite the gradual slowdown, the BOJ emphasized its readiness to boost bond buying should market interest rates surge unexpectedly. A comprehensive policy review is slated for June 2026 to evaluate prevailing market conditions, informing decisions about the bond purchase approach after April 2027.

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