Bank of Japan “stealth tapering”?
Its been 40 days since the Bank of Japan has made a big purchase of any domestic stocks.
Says the Financial Times:
- The central bank now owns 80 per cent of the domestic exchange-traded fund market, fanning fears that its grip over prices has become too strong.
- Under the scheme, the BoJ aims to buy some Y6tn ($55bn) of domestic ETFs every year and has accumulated Y28tn since it began buying in December 2010.
- But it is currently running significantly behind its theoretical pace of about Y500bn of purchases per month.
Sounds like tapering back of the scheme to me. Maybe that is not such a bad thing (BTFDerrs, I'm sry)
Link to the FT is here, may be gated.