May 21, 2019
TOKYO (Reuters) – Bank of Japan Governor Haruhiko Kuroda said on Tuesday the central bank’s purchases of exchange-traded funds (ETFs) were not directly aimed at propping up stock prices.
“The BOJ’s ETF buying may have some effect in restraining big fluctuations in stock prices,” Kuroda told parliament.
“But our purchases aren’t aimed at pushing up stock prices. Even if our buying were to have some effect in boosting stocks, any such impact would be limited,” he added.
The BOJ buys government bonds and risky assets, such as ETFs, to pump money into the economy as part of its efforts to achieve its elusive 2 percent inflation target.
(Reporting by Leika Kihara; Editing by Chris Gallagher)