In today’s briefing:
- ETF Sale Won’t Be Concluded Soon, but as Long as BOJ Keeps Holding Them, the Problems Will Persist
ETF Sale Won’t Be Concluded Soon, but as Long as BOJ Keeps Holding Them, the Problems Will Persist
- Since dividend income and unrealized gains on ETFs have significant impact on BOJ’s finances, the sales of ETF will be discussed, considering BOJ’s overall balance sheet and income/expenses as well.
- There’re unexamined issues, whether the central bank’s purchase of stocks was really good thing, whether it distorted the secondary market, and whether management reforms were delayed by underpinning the stocks.
- BOJ can move on to the issue of ETF disposition when the impact of policy rate hikes is recognized and the market stabilizes, but until then the problems will persist.
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