BOJ Stops ETF Buying for Full Month for 1st Time under Kuroda

Politics

Tokyo, May 31 (Jiji Press)--The Bank of Japan bought no exchange-traded funds in May, stopping the closely watched operation for a full month for the first time under Governor Haruhiko Kuroda, BOJ data showed Monday.

The previous time the central bank’s monthly ETF purchases stood at zero was December 2012. Kuroda took the helm of the BOJ in March 2013.

In a monetary policy meeting in March this year, the BOJ decided to curb ETF purchases if the market was in a calm state.

The central bank buys ETFs to prevent stock market instability from dampening corporate sentiment or negatively affecting the economic and price situations.

The BOJ purchased over one trillion yen in ETFs each in March and April last year, when uncertainties abounded amid the rapid spread of the novel coronavirus around the world.

[Copyright The Jiji Press, Ltd.]

Jiji Press