In the previous fiscal year, the Bank of Japan recorded a record loss from holding Japanese government bonds.

The Bank of Japan announced that in the previous fiscal year, its holdings of Japanese government bonds experienced a record loss, highlighting the heavy valuation impact caused by the shift to higher interest rates. The Japanese central bank disclosed on Wednesday that the unrealized losses on its Japanese government bond holdings for the fiscal year ending in March amounted to 45.441 trillion yen, equivalent to 2,852.6 billion US dollars. This loss amount exceeded the 28.625 trillion yen recorded in the previous fiscal year and is the largest loss for the central bank since comparable data has been published. Bank of Japan officials have long insisted that such losses do not affect monetary policy decisions, as the bank intends to hold these bonds until maturity, meaning these unrealized losses will not be realized.