Overview

• The policy decision passed 7–2, with board members Hajime Takata and Naoki Tamura favoring a 25 basis-point hike.
• The central bank will sell ETFs worth ¥330 billion and J-REITs worth ¥5 billion each year at market prices in a paced, proportional plan.
• Officials said Japan’s economy has recovered moderately with consumption supported by jobs and incomes, while inflation has hovered near 2.7% to 3.0%.
• Tokyo stocks eased after the announcement, with the Nikkei 225 down 0.57% as investors weighed the withdrawal of a major institutional buyer.
• Analysts say the moves point to gradual normalization and caution that future rate increases could shift global capital toward Japan and pressure emerging markets, with domestic politics likely to influence timing.