Official announcement by the Bank of Japan

Bank of Japan Maintains 0.1% Rate, Announces Bond Purchase Reduction as Yen Hits Six-Week Low

Jun 14, 2024, 05:47 AM

The Bank of Japan (BoJ) has decided to maintain its benchmark interest rate between 0% and 0.1%, while announcing plans to reduce its bond purchases. The BoJ will continue its current bond-buying program in line with the March policy meeting until the next meeting in July, where it will outline a detailed plan for scaling back these purchases. This decision comes as the yen weakens, hitting a six-week low against the dollar, with USD/JPY rising 0.5% to 157.895. Market participants were anticipating more immediate details on the bond tapering plan. Governor Ueda emphasized that the reduction in bond buying is not a proactive monetary policy tool and stated that the BoJ will adjust rates if underlying inflation rises towards the 2% target.