Central Banks

BOJ Refrains From ETF Buying, Stokes Policy Move Speculation

  • Bank stays out of market despite 2% morning fall in stocks
  • Change in stance could signal looming change at March meeting

THe Bank of Japan (BOJ) headquarters in Tokyo.

Photographer: Toru Hanai/Bloomberg
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The Bank of Japan stayed out of the stock market Monday, a surprise departure from its usual playbook of buying exchange-traded funds when equities fall 2% or more in the morning session.

The apparent shift in strategy from the central bank will likely feed into speculation that it is preparing to scale back its massive stimulus as early as next week.