BoJ decides to prioritize JGB market stability by tapering reductions in bond purchases in FY26
Key points
- BoJ leaves policy rate on hold for third straight meeting amid heavy uncertainty over US-Japan trade talks and other factors
- Pace of reductions in bond purchases will slow modestly in FY26; market impact is expected to be limited
- Bank seen carefully scrutinizing likelihood of realizing its scenario for economic activity and prices, but we still expect next rate hike to come in January 2026
