Bank of Japan Maintains Interest Rate at 0.5%, Plans Gradual Bond Purchase Reduction

According to PANews, the Bank of Japan has decided to keep its target interest rate steady at 0.5%, aligning with market expectations. This marks the third consecutive meeting where no changes have been made to the rate. The decision on the bond reduction plan was made with an 8-1 vote. The central bank plans to decrease its monthly government bond purchases, with the total expected to reach approximately 2 trillion yen from January to March 2027. Starting in April 2026, the Bank of Japan will reduce its Japanese government bond purchases by about 200 billion yen each month per quarter.