Band of Japan’s ETF buying this year reaches 6 trillion yen target

Fawad Maqsood December 11, 2018

TOKYO: The Bank of Japan (BOJ) has purchased just over a record 6 trillion yen ($53.2 billion) worth of exchange-traded funds this year, central bank data showed on Tuesday, reaching its target still with three weeks to go before the end of the year.

The BOJ said it bought 70.3 billion yen in stock ETFs on Tuesday.

It also bought 1.2 billion yen in ETFs comprising stocks issued by firms that are proactively investing in physical and human capital, bringing its total amount of ETF buying in 2018 to a record 6.0678 trillion yen.

In calendar 2017, the BOJ bought 5.9033 trillion yen.

Under a massive asset-buying programme launched in 2013, the BOJ is buying government bonds and risky assets such as ETFs to achieve its ambitious 2 percent inflation target.

The BOJ pledges to buy roughly 6 trillion yen of ETFs per year, but in July the central bank decided to make its ETF buying more flexible, saying that the size of its purchases could fluctuate depending on market conditions.

Copyright Reuters, 2018

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