# BOJ holds 1.25% rate while accelerating ETF sales as inflation stays elevated

> The Bank of Japan held its policy rate at 1.25% but voted to accelerate ETF sales from ¥330 billion to ¥860 billion a year from January 2027, while its outlook kept inflation above target in fiscal 2026 and 2027.

Source page: https://stoqly.net/news/boj-holds-rate-while-accelerating-etf-sales

- **Published:** 2026-10-31T16:00:00+00:00
- **Updated:** 2026-10-31T22:10:46+00:00
- **Section:** In the news

**Correction (2026-10-31T22:10:44Z):** Cover image corrected: The Bank of Japan, its 1.25% policy rate and ETF sales represented in an original editorial illustration.

**Correction (2026-10-31T22:10:28Z):** Cover image corrected: The Bank of Japan, its 1.25% policy rate and ETF sales represented in an original editorial illustration.

The Bank of Japan kept its uncollateralized overnight call-rate target at around **1.25%** at its October 30 meeting, with the decision passing by an **8–1** vote. Board member Hajime Takata dissented in favor of a **1.5%** rate, saying the Bank should move closer to the neutral rate while underlying consumer-price inflation has reached the price-stability target.

**A larger balance-sheet unwind** From January 2027, the BOJ will raise annual ETF sales to about **¥860 billion** at book value from about **¥330 billion**. The Bank says that equals roughly 0.1% of market trading value; at market value, the annual amount is about ¥2.46 trillion.

The BOJ said its ETF sales, which began in January 2026, had proceeded smoothly without a major market impact as stock-market trading values expanded. At the new book-value pace, it estimates that disposing of its ETF holdings would take about **43 years**, versus about 112 years at the previous pace. Sales can still be temporarily adjusted or suspended if market conditions require it.

The October outlook put median real-GDP growth at **0.7%** in fiscal 2026 and **0.7%** in fiscal 2027. Median CPI inflation excluding fresh food was projected at **2.5%** and **2.6%**, respectively, keeping price growth above the BOJ’s 2% target through the forecast period. The combination leaves the policy path sensitive to the persistence of inflation and the effect of energy prices on household purchasing power.

- [BOJ Statement on Monetary Policy, October 30, 2026](https://www.boj.or.jp/en/mopo/mpmdeci/mpr_2026/k261030a.pdf)
- [BOJ Outlook for Economic Activity and Prices, October 2026](https://www.boj.or.jp/en/mopo/outlook/gor2610a.pdf)
- [Reuters report via Marketscreener on BOJ decision and ETF sales](https://ca.marketscreener.com/news/boj-sets-etf-sale-pace-at-860-billion-yen-a-year-ce785fdad08cf523)

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Written by Stoqly from SEC filings and market data. For information only — not investment advice or a recommendation to buy, sell or hold any security.