BOJ Declares End of Deflation, Holds Rates but Accelerates ETF Reduction

English summary

The Bank of Japan officially declared that underlying CPI inflation has met the 2% target, marking the end of deflation. While holding the policy rate at 1.25%, it unexpectedly increased annual ETF sales to ¥860 billion, shortening the liquidation period from 112 years to 43 years. Hawkish signals suggest potential future rate hikes, with markets focusing on long-term impacts on JPY exchange rates and equity liquidity.