Economics
BOJ Should Avoid ETF Buys Fueling Stock Bubble, Ex-Official Says
- Yamaoka sees bank signaling skipping of ETFs when stocks high
- Will be hard to explain later if no stock fund tweaks, he adds
This article is for subscribers only.
A three-decade high for Japan’s soaring stocks is adding to pressure on the Bank of Japan to tweak its buying of exchange-traded funds, according to the former head of its financial markets department.
“Shares could be rising on a bubble and the BOJ could be helping inflate that bubble,” Hiromi Yamaoka said in an interview Monday, the same day the Nikkei 225 Stock Average topped 30,000 for the first time since 1990. “The bank will be held responsible if it continues to buy ETFs without making any changes.”