Tapering? BOJ's ETF purchases hits lowest since 2016

Omkar Godbole FXStreet Contributor

The Bank of Japan (BOJ) seems to have trimmed purchases of exchange-traded funds (ETF) amid stock market stability.

On each of the four days that it conducted operations this month, the BOJ bought 70.2 billion yen ($631 million) of regular ETFs tracking Japanese shares, according to Bloomberg Quint. That is the lowest daily amount since the central bank doubled its annual buying target in July 2016.

The cut in ETF purchases does not necessarily mean the central bank is tapering its ETF buying program. The BOJ has said that it may increase or decrease purchases depending on market conditions.

Further, calls for additional stimulus are increasing amid global growth slowdown.

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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