Bank of Japan to Double Stock Fund Sales Starting in 2027

The Bank of Japan announced it will more than double its annual volume of equity index fund sales starting in January 2027. The amount will rise from approximately 330 billion to 860 billion yen in book value.

The new target represents an estimated market value of roughly 2.46 trillion yen. The central bank intends to absorb about 0.1% of the daily trading volume on the Tokyo Stock Exchange through this strategy.

The decision was formalized following a meeting held on October 30. The schedule ensures that sales are distributed throughout the year to minimize sharp impacts on asset prices.

The Bank of Japan retains the flexibility to adjust or suspend operations if financial market conditions change. The monetary authority stated that sales conducted since January 2026 occurred without causing significant instability.

The benchmark interest rate remains unchanged at 1.25% per year as previously defined. The adjustment focuses exclusively on reducing the institution's asset portfolio without altering the policy on yen borrowing costs.