๐ฆ๐ฏ๐ต Bank of Japan Signals a Historic Policy Shift
The Bank of Japan has officially ended its purchases of risk assets such as ETFs and J-REITs ๐ซ๐ and announced plans to gradually reduce its massive balance sheet over time โณ๐.
Officials have emphasized that any asset sales will be slow, predictable, and carefully managed to prevent market instability โ๏ธ๐ก๏ธ.
Earlier this year, the BOJ also scrapped Yield Curve Control ๐ and moved further away from decades of ultra-loose monetary policy ๐ดโฌ๏ธ.
With inflation and wage growth showing improved stability ๐๐ญ, Japan is cautiously entering a phase of monetary normalization.
๐ Global markets are watching closely, as Japanโs policy decisions can influence currencies ๐ฑ, bonds ๐ฆ, equities ๐๐, and cross-border capital flows.