Japan Central Bank's ETF Shopping Spree Is Becoming a Worry
- Sustainability is said to be a key concern for some at the BOJ
- No changes are likely at the policy board’s meeting this week
Some officials at the Bank of Japan are increasingly concerned about the sustainability of the BOJ’s purchases of exchange-traded funds, according to people familiar with discussions at the central bank. But the chances of any change at this week’s policy meeting are low, they said, with no need for an immediate change to the program.
Concerns include the risk that the central bank could end up owning such large amounts of the free-floating shares of some listed companies in the Nikkei-225 Stock Average that it could seriously distort the market, according to the people, who declined to be identified because the talks are private. Still, they say it’s unlikely the matter will be discussed in detail at the two-day policy meeting ending July 20.