At a press conference after a Cabinet meeting, Finance Minister Katayama Satsuki (片山さつき) expressed the view that using proceeds from the Bank of Japan's ETF sales as a source of funds would have no effect on the Bank of Japan's decisions regarding monetary operations. The government plans to assume that additional sales proceeds will amount to approximately ¥1 trillion annually, and said that the framework will be developed in accordance with instructions received during the upcoming budget formulation process.
At a press conference after a Cabinet meeting, Finance Minister Katayama Satsuki (片山さつき) discussed using proceeds from the Bank of Japan's sales of exchange-traded funds (ETFs) as a source of funds. ETF sale proceeds are expected to boost the Bank of Japan's profits and become non-tax revenue for the government.
The government is reportedly assuming additional ETF sale proceeds of approximately ¥1 trillion annually based on the assumed stock price level. Katayama Satsuki (片山さつき) stressed that the scale of the sale proceeds would be the same as the figure presented by the banking sector, and said that instructions on the details of the framework would be received during the upcoming budget formulation process.
Regarding monetary policy, including the treatment of ETFs, Katayama Satsuki (片山さつき) expressed the view that “everything should be decided by the Bank of Japan,” emphasizing decisions made under the Bank of Japan Act.
While the view was expressed that this would not affect the Bank of Japan's decisions, attention is focused on how the government will design the coordination between the use of specific funding sources and monetary operations going forward.