At a press conference following its Monetary Policy Meeting, the Bank of Japan confirmed its policy of maintaining the target for the uncollateralized overnight call rate at around 0.5% and announced a plan to reduce its purchases of long-term government bonds.
At this meeting, the Bank of Japan unanimously decided to maintain its policy of guiding the uncollateralized overnight call rate at around 0.5%. This represents a continuation of its previous policy stance. Regarding the plan to reduce purchases of long-term government bonds, the Bank explained that it had considered market trends and market functioning.
Under the plan presented, the planned monthly purchase amount of long-term government bonds will generally be reduced by approximately ¥400 billion per month in January–March 2026, by approximately ¥200 billion per quarter from April–June 2026 onward, and to approximately ¥2 trillion in January–March 2027.