Kuroda vows to keep up Bank of Japan's ETF purchases: Asahi

Published Tue, Mar 30, 2021 · 07:11 AM

[TOKYO] Bank of Japan Governor Haruhiko Kuroda said the central bank will continue to buy exchange-traded funds (ETFs) as needed with a close eye on market developments even after the coronavirus pandemic subsides, the Asahi newspaper reported on Tuesday.

As part of a review of its policy tools earlier this month, the central bank removed a pledge to buy ETFs at a set pace and decided to buy only when markets face turbulence to make its massive stimulus programme more sustainable.

In an interview with the Japanese daily, Mr Kuroda repeated that the BOJ had "absolutely no plan" to end its ETF buying altogether or unload its huge holdings.

"We will continue to buy ETFs flexibly and in a nimble fashion, so it's absolutely not the case that we are exiting ultra-loose monetary policy," Mr Kuroda was quoted as saying.

Japan's economy was improving thanks to solid exports, Mr Kuroda said, adding the BOJ will continue to support via ultra-loose policy corporate efforts to adjust to challenges in a post-pandemic world.

Mr Kuroda also called on financial institutions to take into account climate-related risks in extending loans and making investment, according to the Asahi.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

VIEW ALL

"Financial institutions must recognise what risks their portfolios are exposed to" regarding climate change, Mr Kuroda was quoted as saying.

REUTERS

KEYWORDS IN THIS ARTICLE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

International

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here