MNI BRIEF: BOJ Nakamura: ETF Buying Helps Smooth Risk Premium

The Bank of Japan's buying of exchange-traded funds (ETFs) helped control risk premiums, which tend to decline sharply in Japan, and the central bank's actions had helped soften any impact, new board member Toyoaki Nakamura said on Wednesday.

He added that the BOJ needs a tool that will help underpin sentiment in the economy and ETFs can help. Last week, two former BOJ chief economists, Kazuo Momma and Kenzo Yamamoto, told MNI the BOJ needed to rethink its ETF-buying policy

Nakamura also said the BOJ will consider any tools that will mitigate the side-effects from easy policy whilst aiming to boost the overall impact.