Per Woofun AI, the Bank of Japan Policy Board concluded its monetary policy meeting with a decisive shift in Japanese government bond (JGB) acquisition strategy. Citing the need for predictable central bank intervention to support market stability, the board voted 7 to 1 to suspend the planned reduction of bond purchases effective July 2027.

Under the revised framework, the BOJ will maintain monthly JGB purchases at approximately 2 trillion yen starting April 2027, reversing the previous trajectory of reducing buys by 200 billion yen per quarter. The central bank emphasized flexibility, retaining the authority to expand purchase scales or deploy fixed-rate operations if long-term interest rates rise rapidly.

Additionally, the BOJ announced it will forgo mid-term reviews of the direct JGB purchase plan, though it remains prepared to adjust the pace based on market developments.