The Bank of Japan announced that it would leave the policy rate unchanged at around 1.25% and said inflation had reached its 2% target. It also decided to accelerate the pace of selling ETFs purchased as part of monetary easing, with annual sales of approximately ¥860 billion on a book-value basis and completion targeted in 53 years.
The BOJ decided at its Monetary Policy Meeting not to raise rates and to maintain the policy rate at around 1.25%. The decision is reportedly intended to assess the effects of the previous rate increase.
Regarding price trends, the BOJ said underlying inflation had reached around 2% and characterized this as the first effective achievement of the target since 2013. It plans to continue confirming whether inflation has become established at around 2%.
The BOJ also decided to accelerate ETF sales, selling approximately ¥860 billion annually on a book-value basis and targeting completion in about 43 years.
It raised its fiscal 2027 inflation outlook to 2.6% from 2.4% previously. It will closely monitor the effects of risk factors such as developments in the Middle East and expanding AI demand on the economy and prices.