The Bank of Japan kept its policy rate at 1.25% on Oct. 30 but approved faster sales of exchange-traded funds, leaving the borrowing-cost benchmark unchanged while stepping up the disposal of its stock-market holdings.
The rate decision passed by an 8-1 vote. Board member Hajime Takata proposed a rate of 1.5%, according to the official statement; that proposal was defeated.
ETF sales accelerate in January
The bank unanimously approved an annual ETF sales pace of about 860 billion yen on a book-value basis, up from about 330 billion yen. The change takes effect in January 2027.
Reuters separately reported the new pace and start date. Its report said the revised schedule would imply about 43 years to complete the sales, compared with the previously estimated 112 years. Those estimates describe a disposal timetable, not an immediate sale of the whole portfolio.
Two different policy decisions
For business readers, the distinction is between the price of short-term money and the pace at which the central bank reduces its ETF holdings. The rate hold does not mean the asset-sales programme is standing still.
The figures also require care: book value is an accounting measure, not the same as market value. Nor does the policy-rate decision establish what any particular company will pay on a loan. Actual financing terms depend on the borrower and its contract.