When Will BOJ Slow ETF Buying? Some Say When Nikkei Tops 20,000
- That’s an important level for the bank, according to analysts
- BOJ has stepped up purchases since doubling annual target
A pedestrian wearing a protective mask walks past the Bank of Japan in Tokyo.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
The Bank of Japan will maintain its current pace of buying exchange-traded funds until the Nikkei 225 Stock Average exceeds 20,000, according to analysts who closely watch the central bank’s purchase program.
That’s the key level for the central bank because when the index is trading below that, consumers have the impression the market and economy are doing badly, the analysts say. It’s also around the mark where the Nikkei 225 trades at book value.