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BOJ further facilitated through purchases ETF has other levers constant

Bank of Japan eases further through ETF buys, holds other levers steady

The Bank of Japan increased its purchase of exchange traded funds of billions of billions of ¥ 6 from ¥ 3.3 as part of a move to a more expansive and stimulate the economy policy as downside risks to the economy remain , but it remained constant to other policy instruments.

“The BOJ considers that the measures of monetary policy and government initiatives will produce synergy effects in the economy,” the central bank said in a statement.

Investors have speculated about a downward movement in interest rates negative 0.1% in some deposits at the central bank, but the Bank of Japan held pat on that and the current pace of asset purchases in billions of ¥ 80 per year.

Prime Minister Shinzo Abe unveiled a broad stimulus plan ¥ 28 billion on Wednesday, Reuters reported that the Japanese government can only provide as much as ¥ 7 billion direct fiscal stimulus.
But speculation is that the Japanese central bank may feel more pressure to reduce interest rates deeper into negative territory and Governor Friday, Haruhiko Kuroda, was asked staff to examine the impact of negative rates.

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