BoJ Governor Haruhiko Kuroda told upper house financial committee that wit the review of ETF purchases, the central bank could continue to use easing policy “more flexibly and effectively.” ETF purchases are also a vital part of the yield curve control, which will guide YCC to avoid impact of stock prices. Currently, the central bank is not considering selling ETF holdings at all, nor halting purchases.
Additionally, Kuroda also emphasized the need to maintain the 2% inflation target. He said that it’s a “global standard” and “must not change”. The inflation target also helps stabilizes currencies among major economies.
