Story perspectives

Bank of Japan to Halt New Lending in July

1/30/2025

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Summary

Story summary

The Bank of Japan (BOJ) will cease new lending from July to reduce its balance sheet.
Outstanding loans total ¥77 trillion ($496 billion), representing 10.4% of the BOJ's balance sheet.
This decision aligns with Governor Kazuo Ueda's goal of policy normalization after prolonged monetary easing.
The BOJ's balance sheet is ¥740 trillion, exceeding those of the Federal Reserve and European Central Bank.
Ending the program may lead to higher government bond yields and short-term interest rates.

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Story summary

The Bank of Japan (BOJ) will cease new lending from July to reduce its balance sheet.
Outstanding loans total ¥77 trillion ($496 billion), representing 10.4% of the BOJ's balance sheet.
This decision aligns with Governor Kazuo Ueda's goal of policy normalization after prolonged monetary easing.
The BOJ's balance sheet is ¥740 trillion, exceeding those of the Federal Reserve and European Central Bank.
Ending the program may lead to higher government bond yields and short-term interest rates.