BOJ executives probably want to raise short-term rates at least to 1.5% by the end of fiscal 2026, so they have scope to reduce borrowing costs when the economy faces another downturn, Sakurai said.

With the BOJ set to raise interest rates as higher prices ripple through the economy, a key question for stock investors is what policymakers plan to do with this enormous pile of funds, and when.

The BOJ reported Tuesday that its current account will probably fall ¥7.56 trillion ($48.2 billion) due to fiscal factors including government bond issuance and tax payments on Wednesday.

BoJ, Fed On Different Policy Paths On July 31, the BoJ hiked its key short-term interest rate by 15 basis points to 0.25%, and opted to halve its bond-buying program to JPY 3 trillion from next year.

Under the current plan laid out last year, the BOJ has been slowing bond purchases by around 400 billion yen per quarter to halve monthly buying to 3 trillion yen by March 2026 - a pace that will ...

As markets stabilised, the BOJ began to gradually sell the shares from 2016. The balance of its stock holdings of 2.5 billion yen ($17 million) by June 30 hit zero on July 10, the bank's balance ...