Kuroda vows to keep up BOJ’s ETF purchases: Asahi newspaper

Economy

FILE PHOTO: Bank of Japan (BOJ) Governor Haruhiko Kuroda attends a news conference at the BOJ headquarters in Tokyo, Japan July 30, 2019. REUTERS/Kim Kyung-Hoon
FILE PHOTO: Bank of Japan (BOJ) Governor Haruhiko Kuroda attends a news conference at the BOJ headquarters in Tokyo, Japan July 30, 2019. REUTERS/Kim Kyung-Hoon

TOKYO (Reuters) - Bank of Japan Governor Haruhiko Kuroda said the central bank will continue to buy exchange-traded funds (ETF) as needed with a close eye on market developments even after the coronavirus pandemic subsides, the Asahi newspaper reported on Tuesday.

As part of a review of its policy tools earlier this month, the central bank removed a pledge to buy ETFs at a set pace and decided to buy only when markets face turbulence to make its massive stimulus programme more sustainable.

In an interview with the Japanese daily, Kuroda repeated that the BOJ had “absolutely no plan” to end its ETF buying altogether or unload its huge holdings.

“We will continue to buy ETFs flexibly and in a nimble fashion, so it’s absolutely not the case that we are exiting ultra-loose monetary policy,” Kuroda was quoted as saying.

Japan’s economy was improving thanks to solid exports, Kuroda said, adding the BOJ will continue to support via ultra-loose policy corporate efforts to adjust to challenges in a post-pandemic world.

Kuroda also called on financial institutions to take into account climate-related risks in extending loans and making investment, according to the Asahi.

“Financial institutions must recognise what risks their portfolios are exposed to” regarding climate change, Kuroda was quoted as saying.

(Reporting by Leika Kihara in Tokyo; Editing by Matthew Lewis)

Reuters