MNI POLICY: BOJ Keeps Y6 Trln ETF Buying But Amount Flexible

     TOKYO (MNI) - The Bank of Japan board Tuesday decided to maintain the large

scale of its purchase of exchange-traded funds at an annual pace of Y6 trillion,

but it also said the bank will buy ETFs in a "flexible: manner, depending on

market conditions.

     "With a view to lowering risk premia of asset prices in appropriate manner,

the BOJ may increase or decrease the amount of purchases depending on market

conditions," the BOJ said after a two-day policy meeting that ended on Tuesday.

     The bank will "revise the purchase amount of each ETF and increase that of

ETFs which track the Tokyo Stock Price Index (TOPIX)" as part of the board's

decision to "strengthen the framework for continuous powerful monetary policy."

     The BOJ will increase the amount of be used for ETFs that track the TOPIX

to Y4.2 trillion from Y2.7 trillion.

     It will lower the amount to be used for ETFs that track any of the three

indexes -- the TOPIX, the Nikkei 225 Stock Average, or the JPX-Nikkei Index 400

-- to Y1.5 trillion from Y3 trillion.

     There is no change to the amount of each ETF to be purchased for supporting

firms that are "proactively investing in physical and human capital" at an

annual pace of about Y300 billion.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

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