BOJ cautious on tightening policy, slows bond tapering due to risks

From Yahoo Finance: 2025-06-16 17:01:00

The Bank of Japan is cautious about raising interest rates and reducing its massive stimulus. Rising oil prices and U.S. trade policy uncertainty pose risks. The BOJ maintains short-term rates at 0.5% and slows bond tapering. Market-friendly decisions aim to prevent long-term rate spikes. A review of fiscal 2026 taper program is scheduled for June. Uncertainty over U.S. tariffs affects central banks’ decisions. The BOJ faces inflation pressures and potential economic slowdown due to escalating conflicts and trade tensions.

Read more: BOJ to slow pace of bond tapering next year as fresh risks emerge