BoJ board member Toyoaki Nakamura said the March policy review will seek ways to make the easing framework more “effective” and “sustainable”. The review will also looking into whether the asset purchases and various tools are “exerting intended effects”.
Nakamura maintained that ETF purchases “will remain a necessary tool” to eradicate the deflationary mindset”. But “this is not just about ETFs but by buying huge amounts of assets and holding onto them for a prolonged period, the BOJ could affect market functions. That is something we need to be mindful of”.
