The Bank of Japan maintains its target interest rate at 0.5%, which is in line with market expectations

The Bank of Japan kept its target interest rate unchanged at 0.5%, in line with market expectations, and held its third consecutive meeting unchanged. The Bank of Japan has decided on its bond reduction plan with an 8-1 vote. The monthly purchase of treasury bond will be reduced, and the total purchase from January to March 2027 is expected to be about 2 trillion yen. From April 2026, the purchase of Japanese treasury bond bonds will be reduced by about 200 billion yen every quarter.