The Bank of Japan (BOJ) maintained its short-term interest rate target at 0.50% in a unanimous vote. However, the BOJ will reduce its monthly JGB purchases to approximately ¥2 trillion by January-March 2027, a phased reduction starting with ¥400 billion cuts each quarter until January-March 2026, followed by ¥200 billion cuts thereafter. One member dissented, advocating for market-determined long-term rates. Japan's economic recovery is moderate, but growth is expected to slow due to global factors and declining corporate profits. Inflation is projected to increase gradually, but risks remain due to uncertain global economic conditions.

Prepared by Christopher Adams and reviewed by editorial team.