Japan’s central bank appears to be growing more comfortable with larger declines in the country’s stock prices, a sign it may have begun in the share market what analysts describe as “stealth tapering” of its massive monetary stimulus.
The Bank of Japan refrained from buying stocks on two days this week when the Topix .TOPX index was down more than 0.4 percent by midday, a departure from a previous pattern in which it bought exchange-traded funds (ETFs) on days when the index fell more than 0.2 percent.
The BOJ already has a precedent of stealth tapering in its bond buying and similar moves in its stock market operations come after it said last month it would make its asset purchases “more flexible”.
That change met stiff resistance from some BOJ board members, highlighting the massive internal challenges it faces in maintaining radical stimulus policies…
Read more : Reuters, 17.08.2018