The Bank of Japan on 30 October 2026 published an amendment to its "Basic Principles for Disposal of ETFs and J-REITs" together with a reference document titled "Decisions regarding a Change in the Pace of Sales of ETFs (October 2026)".
On the same date the Bank of Japan also released its Statement on Monetary Policy, the Outlook Report and Indicators Related to Underlying Inflation, and updated schedules for outright purchases of Japanese government bonds and US dollar funds-supplying operations.
The accelerated sales schedule forms part of the Bank's ongoing normalisation of its balance sheet following its assessment that the price target has been achieved.
The accelerated sales schedule forms part of the Bank's ongoing normalisation of its balance sheet following its assessment that the price target has been achieved.
This change in the pace of ETF sales will lead to a faster reduction in the Bank's holdings, which investors will need to factor into their assessments of liquidity and pricing dynamics in the Japanese equity market over the coming years.