TOKYO (Reuters) – Bank of Japan Governor Haruhiko Kuroda has said that the central bank is already buying trading currencies (ETFs) flexibly, but will try to find ways to make the program more efficient and stable in re- scheduled inspection of its policy instruments in March.
Kuroda said the BOJ is aware of the need to address the side effects of its massive stimulus, adding that it was aware of criticism that its ETF purchases were driving up stock prices.
But he gave little idea of what tweaks the BOJ could make to the asset purchase program, and said he saw no sign that ETF buying was causing major market or real turmoil. corporate governance problems.
“We are already buying ETFs in a fast and flexible way,” Kuroda told parliament on Wednesday.
“The BOJ’s various instruments, including ETF purchases, will be the target of the March review,” he said. “We will examine how our tools impact markets and see what we can do better. ”
The BOJ will review its policy tools in March to make them more sustainable, as the COVID-19 outbreak increases the chances of a long battle to slow growth.
The move comes amid higher criticism that the purchase of a BOJ asset is drying up market liquidity and driving stock prices away.
On the purchase of BOJ government bonds, Kuroda said it has slowed significantly recently as markets remain calm.
He also said that the average length of time in the holding of government bonds was moderately stable at around seven years.
Reciting with Leika Kihara; Edited by Kevin Liffey & Simon Cameron-Moore