The Bank of Japan (BOJ) opted to leave its benchmark interest rate unchanged at 0.5% on Tuesday and outlined a more gradual approach to scaling back its bond purchases in the upcoming fiscal year, signaling a measured stance toward unwinding its accommodative monetary policy.
The decision was in line with market expectations, concluding the two-day policy meeting with a unanimous vote.
Looking ahead to fiscal 2026, the central bank plans to taper its monthly bond buying by 200 billion yen per quarter, bringing total purchases down to approximately 2 trillion yen by March 2027.
Following these, the central bank governor Kazuo Ueda is scheduled to elaborate on the decision at a press conference later in the afternoon.
