The Bank of Japan (BOJ) announced it will suspend the tapering of its bond purchases starting July 2027. This decision, made during the BOJ's monetary policy meeting, aims to enhance the efficiency and stability of the Japanese government bond (JGB) market. The BOJ plans to reduce its monthly JGB purchase target by approximately ¥200 billion per quarter until March 2027, maintaining a target of ¥2 trillion from April 2027 onward. The central bank emphasized its commitment to market stability, stating it will respond flexibly to rapid increases in long-term interest rates by potentially increasing JGB purchases or conducting fixed-rate operations. The BOJ will also cease mid-term reviews of its direct JGB purchase program but remains open to adjusting purchase pace based on market developments.