Bank Of Japan Accelerates Plan To Buy ETFs And Property As A New Form Of Stimulus

Japan Typhoon

Japan’s wildest stimulus idea to date, in our view, has been the recent proposal to buy not just government bonds, but also ETFs and Real Estate Investment Trusts (REITs) using freshly printed money from the central bank.

While today the Bank of Japan unveiled plans to buy 3.5 trillion yen of long- and short-term government securities, they oddly accelerated plans to start sopping up ETFs and REITs.


The central bank also said it would bring forward its next policy board meeting to November 4-5 from November 15-16 to make arrangements to start buying exchange-traded funds and J-REITs at an early date.

What’s the rush? Perhaps they’ll explain later today:

As widely expected, it decided to keep interest rates unchanged at a range of zero to 0.1 per cent by a unanimous vote.

The BOJ will issue its twice-yearly report on the economic and price outlook at 3 p.m. (2 a.m. ET). Governor Masaaki Shirakawa will then hold an embargoed news conference, with his comments expected to come out sometime after 4:15 p.m. (3:15 a.m. ET).

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