BOJ braces for higher interest rates with provisions boost

Central bank sets aside as much as it can in nod to risks ahead

20250601N BOJ

The Bank of Japan is eyeing further interest rate hikes. (Photo by Tomoki Mera) 

JUNTARO ARAI

TOKYO -- The Bank of Japan has set aside the maximum provisions for losses on bond transactions, in a sign of how the central bank is preparing for rising interest rates.

For fiscal 2024, the BOJ raised the level of provisions to 100% for the first time, Nikkei has learned.

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