Bank of Japan to slow cuts to government bond purchases

17th Jun 2025 07:50

(Sharecast News) - Japan's central bank said on Tuesday said it would slow cuts to government bond purchases from April 2026 as it held its benchmark overnight borrowing rate steady at 0.5%.

The Bank of Japan reiterated that it will continue to reduce monthly purchases of Japanese government bonds by roughly JPY 400.0bn yen (£2.04bn) per quarter to roughly JPY 3.0trn (£15.3bn) until March 2026 - down from the expected JPY 4.1trn (£20.88bn) of JGBs a month during the three months ending June 2025.

BOJ will then slow the cuts to JPY 200.0bn (£1.02bn) per quarter from April 2026 to March 2027 as it aims to reach a monthly purchase amount of approximately JPY 2.0trn (£10.19bn) in a move aimed at improving the "functioning of the JGB markets" in a manner that "supports stability".

The central bank also said it will hold another interim assessment at its monetary policy meeting in June 2026.

Reporting by Iain Gilbert at Sharecast.com