Bank of Japan Balance Sheet Falls $148 Billion in Q3 2025

BoJ assets dropped to $4.62 trillion, marking the largest quarterly decline since it began Quantitative Tightening in 2024.

Summary

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Terms & Concepts
  • Quantitative Tightening (QT): A monetary policy process where a central bank reduces its balance sheet, often by selling assets or letting them mature without reinvestment.
  • Balance Sheet: A financial statement showing the total assets and liabilities of an entity, used here to measure the size of the Bank of Japan’s holdings.