KCG Macro: The Bank of Japan keeps interest rate path tight-lipped.

Kathy Bostjancic, an analyst at Oxford Economics, said that the Bank of Japan has shown almost no indication of interest rate prospects at its most recent meeting. As widely expected, the Bank of Japan will keep its policy rate unchanged at 0.5% and has decided to start reducing its purchases of Japanese government bonds from April 2026. It is projected that by March 2027, this will lead to the Bank of Japan's holdings of outstanding Japanese government bonds decreasing from the current 50% to 42%. Bostjancic pointed out that the Bank of Japan's assessment of the economic conditions and outlook has hardly changed compared to April. Therefore, we will need to wait for more information from Governor Haruhiko Kuroda's press conference this afternoon.