Bankinter | The Governing Council of the Bank of Japan (BoJ) decided by seven votes in favour and two votes against, to raise the benchmark interest rate to 0.25%, from the previous range of 0% – 0.1%. The market consensus expected no change, although it perceived an upward move as a possible risk. In addition, the BoJ unanimously approved a reduction in government bond purchases to a monthly pace of ¥3 trillion (about $19.6 billion) in 1Q2026, which is in line with expectations, although it initially guided towards possible quarterly cuts of ¥400 billion in principle. With macroeconomic developments generally in line with current projections, the BoJ considered it appropriate to adjust the accommodative level of its monetary policy, from the perspective of steadily achieving the 2% inflation target.
Bank of Japan raises rates to 0.25% from 0.0%/0.10% range and announces bond purchase cut plan
