The Bank of Japan kept its policy rate at 1.25% while more than doubling the planned pace of exchange-traded fund sales. The October 30 decision will lift annual ETF disposals to ¥860 billion on a book-value basis from January 2027.

Bank of Japan Holds Rate in an 8-1 Vote

The BOJ’s October 30 monetary-policy statement followed a two-day meeting that began October 29. Eight board members supported keeping the uncollateralized overnight call rate around 1.25%.

Board member Hajime Takata dissented and proposed a 1.5% rate. He argued that underlying inflation had reached the 2% target and that policy should move more quickly toward a neutral setting.

ETF Sales Pace Rises From ¥330 Billion to ¥860 Billion

The BOJ began selling its ETF holdings in January 2026 at an annual book-value pace of about ¥330 billion. It will raise that pace to approximately ¥860 billion from January 2027, equivalent to about 0.1% of Prime Market trading value.

Bank of Japan Annual ETF Sales Pace (book value)

2026 pace
¥330B
From January 2027
¥860B
Source: Bank of Japan monetary-policy statement, October 30, 2026. Chart by Fusion Market News.

The central bank estimated the new pace would equal roughly ¥2.46 trillion annually at market value. It retained flexibility to adjust or suspend sales during market stress, while J-REIT sales will remain near ¥5 billion per year.

Inflation Risks Remain Tilted to the Upside

The BOJ’s separate October outlook said core inflation will accelerate clearly above 2% before easing toward that level later in the forecast period. Officials cited energy costs, yen depreciation and semiconductor prices linked to global AI demand.

The decision follows other major policy developments, including the RBNZ’s split rate vote, record asset-manager inflows and Europe’s T+1 settlement plan. For Japanese markets, the faster ETF runoff adds a gradual liquidity change without an immediate rate increase.

Sharron Kendi is a seasoned crypto market analyst and writer with over three years of experience decoding blockchain trends, price movements, and market dynamics. She holds a Bachelor’s Degree in Commerce (Finance) from Kenyatta University, blending a solid academic foundation with a sharp eye for technical analysis and a deep understanding of on-chain data. Her work delivers clear, data-driven insights that empower investors to navigate the fast-evolving digital asset space with confidence.