This document records in detail the Bank of Japan Policy Board's assessment of economic and financial conditions and monetary policy deliberations during the Monetary Policy Meeting held on June 16-17, 2025.
Regarding money market operations, they were conducted according to the guideline decided at the previous meeting (April 30-May 1), with the uncollateralized overnight call rate fluctuating in the range of 0.476-0.481%. For Japanese government bond (JGB) purchases, approximately 4.1 trillion yen monthly was implemented according to the reduction plan decided at the July 2024 meeting.
In short-term financial markets, the uncollateralized overnight call rate among overnight rates remained around 0.5%, while GC repo rates generally traded at levels comparable to the uncollateralized call rate. For term rates, the 3-month treasury bill rate rose slightly. Japan's stock prices (TOPIX) rose in tandem with US stock prices, and long-term interest rates (10-year JGB yields) also rose following US long-term rates.
Regarding overseas financial and economic conditions, while some weakness was observed due to the effects of trade policies and other factors, overall gradual growth continued. The US economy showed some weak movements but continued gradual growth, while European economies continued weak movements centered on manufacturing, despite some tariff-threat-driven rush exports. The Chinese economy showed signs of policy support but faced downward pressure from tariff increases and real estate market adjustments, with improvement trends showing deceleration.
Regarding domestic financial and economic conditions, detailed analysis was conducted on trends in personal consumption, capital investment, imports and exports, and price conditions, organizing important judgment materials for considering the direction of future monetary policy management.