BOJ to accelerate ETF sales, more than doubling pace from January

· Finance · Japan

The Bank of Japan will accelerate sales of exchange-traded funds and more than double the pace from January, Nikkei Asia reported. The central bank built a large ETF portfolio through years of asset purchases aimed at supporting markets and inflation, and the faster sales mark a step in unwinding that legacy holding. The report does not specify the size of the holdings to be sold. For market participants, the change matters because BOJ ETF selling adds supply to Japan's equity market and signals a continued exit from crisis-era monetary tools as policy normalizes.

Why it matters：A faster BOJ exit from ETF holdings adds a persistent seller to Japanese equities and sets a precedent for other central banks unwinding market-support portfolios.

Key points

  • The pace will more than double starting in January.
  • The BOJ built the portfolio through years of asset purchases.
  • The report did not give the size of the holdings.

Sources (original reporting)

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