Commenting on the Bank of Japan (BoJ) monetary policy tools, Governor Haruhiko Kuroda said in a statement Wednesday that bond purchases are for monetary policy purposes and not for the government.
Additional comments:
Bond buying has slowed significantly because the markets remain calm.
The BoJ is buying medium, long and super-long JGB (Japanese government bonds) in a balanced way to keep the yield curve steadily low.
The BoJ makes purchases of ETFs flexibly.
Purchases of ETFs do not significantly paralyze the functions of the market.
You don’t think ETF purchases cause serious problems of corporate governance.
You are aware of the view that purchases of ETFs may cause a decrease in the function of the stock market.
Various tools, including buying ETFs, will be reviewed in March.
It’s too early to consider an exit strategy
I cannot comment now on what adjustments the BoJ will make as they will depend on the results of the March review.
It is premature to discuss how the BoJ could realize and make use of the huge potential capital gains on its ETF holdings.
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