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MNI BRIEF: BOJ Kuroda: ETF Buys Aimed At Lowering Risk Premium

(MNI) Tokyo
TOKYO (MNI)

Bank of Japan Governor Haruhiko Kuroda said on Wednesday that the bank's purchase of exchange traded funds isn't aimed at supporting or boosting stock prices but at lowering the equity risk premium and stabilising financial markets.

"We have no plan to stop buying ETFs now," as the purchases are part of the easy policy to achieve the 2% price target, Kuroda said.

He also noted that the unrealized profit from holding ETFs is between JPY12 trillion and JPY13 trillion and that this will turn to losses if the Nikkei stock index falls below 21,000.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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