Bank of Japan will clear up aggressive ETF purchases during sudden market changes = sources | Reuters

[Tokio, 18 de Reuters]- The Bank of Japan clarifies its policy of buying exchange-traded funds (ETFs) to aggressively buy exchange-traded funds (ETFs) when market sentiment cools due to the rapid economic recession and the market fluctuates suddenly. I began to adjust in the direction. When the market is calm, such as when the Nikkei stock average is in the historically high range, the buy amount is significantly reduced and the buy is sharpened to reduce the adverse effect on the market function and maintain the relaxation effect. monetary. Several sources have revealed it.

The Bank of Japan plans to announce the results of the monetary policy inspections at the monetary policy meeting in March. According to various parties, a plan has also emerged within the Bank of Japan to remove the buy limit and ETF outlook.

The Bank of Japan announced in March last year that it would aggressively buy ETFs in response to the spread of share prices due to the spread of the new coronavirus infection. As a measure against the crown, it plans to buy up to 12 trillion yen a year, while it has set two targets of 6 trillion yen a year in principle. However, although the actual purchase amount of the Bank of Japan exceeded 12 trillion yen a year in March and April of last year when the market became unstable, the purchase amount decreased when the share price remained strong. and the purchase amount decreased by 12 per year. Far from the trillion yen target. While the Nikkei stock average recovers 30,000 yen in February this year, we will not buy regular ETFs by the 18th, but we will buy a total of 15.6 billion yen in ETFs from companies that are actively investing in equipment and resources. humans. .

The BOJ continues to set purchase targets, and there is a view that if the gap with the actual purchase amount widens, it may send a false message to the market that “the BOJ’s easing stance has receded.” Rather than abolish the target, it is said that market misunderstanding can be dispelled by flexibly increasing purchases in the event of a sudden market change and actually making a large number of purchases.

However, since the results of the policy inspections are scheduled to be announced as the end of the fiscal year approaches, there are deep-seated concerns that the abolition of the upper limit will increase market volatility. Some say that a buy target is still needed as a guide for daily market adjustments, and the Bank of Japan has not come to a conclusion on whether to maintain or abolish the target.