Bank of Japan rapidly shrinking balance sheet
In Q1 2025, the BoJ cut its bond holdings by a record ¥6.2T. Over the past 5 quarters, the total drop reached ¥14.2T.
Its assets-to-GDP ratio has fallen by ~10 points to 117% — the lowest since 2020.
For comparison: the Fed is at 41%, ECB at 22%.
Japan’s tightening is picking up pace. Keep an eye on it.
