© Reuters. A man looks at a mobile phone in front of the Bank of Japan building in Tokyo, Japan June 16, 2017. REUTERS/Toru Hanai/File Photo
TOKYO (Reuters) – The Bank of Japan should discontinue purchases of risky assets such as exchange-traded funds (ETF) once sustainable achievement of its 2% inflation target comes into sight, one board member was quoted saying at the central bank’s January meeting.
Another opinion called for the BOJ to end negative interest rates “at an appropriate timing,” as delaying the decision for too long could require subsequent interest rate hikes to be rapid, a summary of the meeting showed on Wednesday.
Under its massive stimulus programme, the BOJ guides short-term interest rates at -0.1% and the yield around 0%. It also buys government bonds and risky assets as part of efforts to reflate growth and achieve its 2% inflation target.