BOJ's Kuroda: ETF purchases are not aimed at stabilizing the stock market

Omkar Godbole FXStreet Contributor

Bank of Japan's (BOJ) massive exchange-traded fund (ETF) purchases are not aimed at stabilizing the stock market, Governor Kuroda said on Tuesday while speaking in Parliament.

With the ETF holdings reportedly totaling 29 trillion yen, the central bank has morphed into a hedge fund. Many are of the opinion that the BOJ should halt the ETF purchases, else the stock market’s ability to allocate capital efficiently will be ruined.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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