- ETF purchases helps to underpin consumption, capex
- That is done by preventing volatile market moves from hurting public confidence
- Too early to debate specific ways in which BOJ could sell ETFs
At the peak of the pandemic rout in 2020, the BOJ was actually holding on to unrealised losses of around ¥2-3 trillion (roughly $18-26 billion at the time) on its ETF holdings. They are in much, much better shape now at least but that doesn't mean we will see the end of the programme whatsoever.
