Japan’s Abe: BOJ’s ETF buying not aimed at propping up stock prices

TOKYO (Reuters) – Japanese Prime Minister Shinzo Abe said on Wednesday the central bank’s purchases of exchange-traded funds (ETF) are not aimed at propping up stock prices.

“The BOJ is buying ETFs as part of its monetary policy steps. Specific means on how it buys is left to the central bank to decide,” Abe told parliament.

Under a policy dubbed yield curve control, the BOJ guides short-term interest rates at -0.1% and 10-year government bond yields around 0%. It also buys government bonds and risky assets such as ETFs to funnel money to markets.

(Reporting by Leika Kihara; Editing by Chang-Ran Kim)