Bank of Japan keeps rate unchanged, to slow bond taper

Alsharq Tribune-M-Essam 

The Bank of Japan (BOJ) said on Tuesday that it will reduce government bond purchases at a slower pace starting April 2026 while leaving the short-term policy interest rate unchanged at 0.5 percent.

Since ending its decade-long monetary easing in March 2024, the BOJ has been tapering its monthly bond purchases by 400 billion yen (about 2.77 billion U.S. dollars) each quarter.

From April 2026 onward, the reduction pace will be halved to 200 billion yen per quarter.

While the BOJ is scaling back, it retains the flexibility to increase bond purchases if market interest rates spike. A policy review is scheduled for June 2026 to assess market conditions before deciding on the post-April 2027 bond purchase strategy.