Kazuo Ueda’s Double Tightening: Bank of Japan to Sell ETFs and Raise Rates Simultaneously

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The Bank of Japan plans to begin offloading its ¥83 trillion ($534 billion) ETF portfolio as early as January 2026, marking a significant policy shift. Predictions indicate a potential interest rate hike from 0.50% to 0.75% at the upcoming December meeting. This move signals a departure from Abenomics and a transition from being the largest buyer of ETFs to a net seller.
- BOJ has been one of the most aggressive central banks in terms of asset purchases, owning one of the biggest collections of ETFs globally
- In September, it had already laid out a plan for selling its ETFs and Japan real estate investment trusts (J-REITs)
- There are a lot of predictions that the BOJ will raise its policy interest rate from 0.50% to 0.75% at its December 18-19 meeting
The Bank of Japan (BOJ) is reportedly preparing to pull the plug on decades of artificial market support, with plans to begin offloading its colossal ¥83 trillion ($534 billion) ETF portfolio as early as January 2026. This strategic shift marks the final reversal of Abenomics, transforming the central bank from the stock market’s biggest buyer into a net seller.
Why did the BOJ start buying ETFs in the first place?
In terms of asset purchases, BOJ has been one of the most aggressive c…
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