Key facts
- BOJ to unwind ETF holdings in 43 years, down from 112.
- Next rate hike expected in December or January.
- BOJ's current interest rate is 1.25%.
The Bank of Japan announced it will accelerate the sale of its Japanese exchange-traded fund holdings, aiming to complete the divestment in 43 years, a significant reduction from the previous 112-year timeline. This move comes as global markets experience a tech rout and a flight to safe-haven assets like bonds. The central bank's current interest rate stands at 1.25%, with markets anticipating a further hike in December or January as Governor Kazuo Ueda continues his policy normalization efforts. The BOJ had previously spent 37.19 trillion yen to support Japan's stock market.