Bank of Japan Governor Kazuo Ueda has added to his previous comments that the central bank does not yet have any specific plans for how it will sell ETFs and that a weaker Japanese Yen (JPY) pushes up domestic inflation through a increase in import costs.
Additional comments
If we get closer to achieving our price target, we can discuss strategy and guidance on exiting the ultra-loose policy, including the fate of our ETF purchases.
When we sell ETFs we will do so in a way that avoids as much as possible causing disruption to the markets and huge losses on the Bank of Japan’s balance sheet.
It cannot be firmly stated that the weakness of the Yen is negative for the Japanese economy.
A weak Yen is positive for exports and profits for Japanese companies operating around the world.
Source: Fx Street
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