Bank of Japan Governor Kuroda, ETF purchases have the effect of easing unstable market movements – Bloomberg

Photographer: Kiyoshi Ota / Bloomberg

Tohiko Kuroda, governor of the Bank of Japan, met after the monetary policy decision meeting on 29 May and said that the purchase of exchange-traded investment funds (ETFs) by the Bank of Japan had the effect of easing unstable movements in the market.

Kuroda explained that the purchase was flexible depending on market conditions. He said he would discuss exits if the economy and markets stabilize, but said it is still a necessary measure at this time.

He said there was a lot of uncertainty about the impact of the new corona virus on the domestic and foreign economies. He explained that he would continue to implement the current monetary easing measures. He said the cash flow support measures were effective and that he would expand them if necessary.

At the decision meeting, maintain current monetary policy including response to new coronavirus infection.Decision. In the “Price and Economic Outlook Report” released at the same time, the prospects for economic growth and consumer prices in 2020 were revised downward.

Yuki Masushima, Senior Economist at Bloomberg Economics, said: “The downward revision of the outlook for real GDP and consumer prices has highlighted the challenges to stimulating the economy, but the policy stance will not actually be seen. affected “. He cited as concerns the re-expansion of the new corona infection in Europe and the appreciation of the yen over the US presidential elections. There is. “

The “main opinions” of the decision-making meeting will be released on November 9 and the “summary of minutes” on December 23.

Outlook for 20-22

Source: Bank of Japan / Outlook Report (unit:%), benchmark CPI excluding the impact of higher consumption tax / free education policy

(Add a statement on ETF from President Kuroda)