Press Conference by SUZUKI Shunichi, Minister of Finance and Minister of State for Financial Services

(Excerpt)

(Friday, March 3, 2023, 9:42 am to 9:48 am)
 

[Questions and answers:]

Q.

At a recent Diet session, Mr. Ueda, a candidate of Bank of Japan (BoJ) governor, said that dealing with the large amount of ETFs purchased by the BoJ is a major issue. It is said to be depriving individuals of the chance to buy shares at low prices. I myself also utilize the NISA scheme but, as things stand now, I am not able to buy more shares than I had planned because of high share prices.
As Minister who has been encouraging a shift from savings to investment by expanding NISA, how do you see the impact of the BoJ’s ETF purchases on individuals’ financial asset building efforts? In addition, what is your assessment of the impact of the disposal of ETFs and other exit strategies of BOJ’s monetary policy in future?

A.

First, addressing the impact of ETF purchases on individual asset building, I understand that the BoJ implements ETF purchases as part of its monetary policy framework while giving due consideration to their impact on stock markets and others.
Daily share prices are actually moved based on a backdrop that includes not only moves made by the companies themselves but also the financial and economic conditions that surround them, and I do not believe that the BoJ's ETF purchases are having a negative impact on individual asset building.
In addition, your question includes a topic over the past few years of not being able to buy more shares than your plan due to high share prices. In my understanding, waiting to buy dips in share prices is often done in the hope of short-term gains, but we see it as more important, and thus recommended, that households continue investing steadily over the long term, even in small amounts, rather than engage in such trading.
The FSA is committed from this perspective to pursuing effective financial and economic education so that the importance of steady asset building through long-term, diversified, and cumulative investments is firmly instilled in the public.
You also asked about exit strategies and the impact of the disposal of ETFs. I believe it should be left to the BoJ to determine how best to dispose of ETFs held by the BoJ. In any case, I am counting on the BoJ to take economic, price and financial circumstances into account when formulating and implementing policies.