The Bank of Japan’s balance sheet shrinkage is accelerating: Total assets on the BoJ balance sheet declined -148 billion in Q3 2025, to 4.62 trillion, the lowest since mid-2022. This marks the largest quarterly decline since Quantitative Tightening (QT) began in 2024. Since the March 2024 peak, assets have fallen -407 billion, or -8.1%. To put this into perspective, the BoJ's total assets to GDP ratio still stands above 110%. Meanwhile, the Bank of Japan announced in late September that it would start gradually selling its ETF and REIT holdings at a pace of 4.2 billion per year. Japan's era of ultra-loose monetary policy is over.(The Kobeissi Letter)