Bank of Japan accelerates ETF sales, exit timeline reduced to 43 years

The Bank of Japan announced it will sell its equity ETF holdings about 2.6 times faster starting January 2027, reducing the estimated exit timeline from 112 years to 43 years. The central bank held its overnight interest rate at 1.25% while approving the accelerated disposal program. The BOJ began purchasing ETFs in 2010 to stimulate an economy struggling with deflation and weak demand, accumulating a large portfolio with no maturity date that requires market transactions to exit.