Review: BoJ Raise Rates and Pauses Balance Sheet Tapering

In this paper, we discuss:

• Why the BoJ raised rates by 25bps to a 31-year high;
• Why divisions within the Policy Board point to a cautious path for further tightening;
• Why the BoJ paused its balance-sheet tapering despite raising interest rates;
• Why further rate hikes are likely to remain gradual.

Download PDF: BOJ Review – September 2026