BOJ's ETF and Reit buys not distorting markets: Kuroda

Tokyo

BANK of Japan chief Haruhiko Kuroda fended off criticism on Tuesday that the central bank has distorted markets with its purchases of exchange-traded funds and Japanese real estate investment trusts.

The amount of ETFs and J-Reits that the BOJ buys as part of its stimulus programme is "extremely small" compared to the size of those markets, Mr Kuroda said in parliament. The central bank isn't trying to boost stock prices but instead aims to revive the overall markets by lowering risk premiums, he said in response to a question from Mikishi Daimon, a lawmaker in the Japanese Communist Party.