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Bank of Japan holds rate at 1.25% and speeds up ETF sales

The Bank of Japan kept its policy rate around 1.25% on 30 October 2026. It also decided to accelerate sales of its exchange-traded funds, or ETFs, from January 2027.

The rate decision passed by eight votes to one. Hajime Takata proposed a rise to 1.5%, which the majority rejected.

Annual ETF sales will increase from about 330 billion to 860 billion yen at book value. That amount is distinct from the securities' market value. Sales may still be temporarily adjusted or suspended depending on market conditions.

The unchanged rate applies to immediate monetary conditions; faster sales represent a future step in reducing the portfolio.

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