Following the Bank of Japan's decision to accelerate the pace of ETF sales, Prime Minister Takaichi indicated that the gains from the sales would be used to fund a new investment framework. The government is considering using the gains as a source of funding for a special account allocating funds to growth areas, including economic security, as well as issuing bridge bonds.
Following the Bank of Japan's decision to accelerate the pace of its ETF sales in the market, Prime Minister Takaichi indicated that the gains from the sales would be used as a source of policy funding. The gains have been positioned as a new source of funding to support investment in growth areas.
Specifically, a proposal has been put forward to issue “bridge bonds” through a special account, with the proceeds expected to be used for repayment, and to use the special account to fund projects in areas of particular importance to economic security.
Meanwhile, Prime Minister Takaichi expressed opposition to using the increase in sales gains to fund a consumption-tax cut. How the funds will be used remains an issue to be considered in the budget formulation process.
The background to the BOJ decision included a review of large-scale monetary easing and the amount of ETF purchases at the October monetary policy meeting. Prime Minister Takaichi explained the policy of using the sales gains to fund the growth strategy.