Bank of Japan Maintains Interest Rate, Plans Bond Purchase Cuts – Coincu

Bank of Japan held its interest rate at 0.5% on June 17, 2025, in Tokyo, while planning gradual bond purchase reductions. The decision aims to adjust financial market conditions.

This decision by the Bank of Japan marks a continued shift in its monetary policy, with potential implications for financial markets, particularly affecting bond markets and liquidity.

Bank of Japan Holds Rates While Cutting Bond Buying

The Bank of Japan’s announcement on maintaining the interest rate at 0.5% and gradually reducing Japanese government bond purchases reflects an effort to moderate its intervention in financial markets. The decision was made by Governor Kazuo Ueda and the Policy Board, with the bond reduction plan approved by an 8-1 vote. As Governor Kazuo Ueda stated, “The Bank will encourage the uncollateralized overnight call rate to remain at around 0.5 percent. Regarding the reduction of its purchase of Japanese government bonds… the Bank will gradually reduce the amount of its monthly outright purchases” Bank of Japan Monetary Policy Meeting Decision.

As part of its strategy, the bank plans to decrease the bond purchase amount by 200 billion yen each quarter starting April 2026. This move is expected to lead to reduced global liquidity, possibly affecting risk assets like cryptocurrencies.

Market reactions include moderate impacts on Japan’s sovereign debt pricing, with possible implications for the Japanese yen and risk asset volatility. Although there have been no direct statements from key market figures, the financial community is attentive to these changes.

Strategic Adjustments Impact on Yen and Cryptocurrencies

Did you know? In 2018 and 2022, the Bank of Japan’s policy shifts led to significant volatility in global risk assets, as liquidity tightened worldwide, providing historical insight into today’s actions.

Bitcoin, as of the latest update from CoinMarketCap, is priced at $107,560.19, with a market cap of approximately $2.14 trillion. Currently, Bitcoin dominates 63.91% of the market, showing a 41.27% change in its 24-hour trading volume. Recently, the cryptocurrency experienced a 1.56% increase in the past 24 hours, with variances of -1.75% over 7 days, a positive 4.11% over 30 days, and a larger 26.81% growth over 60 days. All data cited is from CoinMarketCap.

Insights from Coincu suggest that the ongoing policy changes by the Bank of Japan may have indirect effects on cryptocurrency markets, particularly through shifts in global liquidity conditions. Analyzing past events, these changes could potentially lead to short-term outflows or adjustments in cryptocurrency trading dynamics.