Reuters with reports via unnamed sources saying the BOJ is growing more receptive to buying more exchange-traded funds ETFs
From Reuters:
- BOJ policymakers are wary of intervening too heavily in the stock market, but its primary monetary easing tools - cutting interest rates and buying government bonds - are showing diminishing returns and have become less attractive since it adopted negative interest rates in January, sources familiar with the BOJ's thinking said
- "ETFs and government bonds are two markets in Japan where there's room to increase the BOJ's purchases in huge amounts," one of the sources said
- "Increasing ETF buying in huge amounts, combined with a modest increase in bond buying and an interest rate cut, could be the only way left to surprise markets," said a former BOJ executive who retains close contact with incumbent policymakers.
"Surprise markets", yeah? I wonder if anyone remembers the last time the BOJ surprised markets ... negative rates ... how did that work out for ya, guys?
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The Bank of Japan policy meeting is on April 27 and 28