Bank of Japan Gov. Haruhiko Kuroda¡¯s policies have a surprise new critic: the head of Japan¡¯s stock exchange.
The central bank¡¯s purchases of exchange-traded funds are distorting the market, Japan Exchange Group Inc. CEO Akira Kiyota said. Kuroda¡¯s program of spending ?6 trillion a year on the funds artificially depresses volatility, which keeps people from trading, said Kiyota, who was previously more supportive of the policy.
¡°It¡¯s not good in the long run,¡± Kiyota said during an interview in Tokyo last week. ¡°If you keep buying ?6 trillion a year, that means constant distortion.¡±
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