"We will take appropriate measures without hesitation."
Bank of Japan Governor Kuroda warned on the morning of October 10 at the House of Councilors' Finance and Finance Committee that Japan and the U.S.'s daily stock price plummets were "very unstable," and provided ample funds to the financial markets. He emphasized the idea of responding without hesitation to reduce upsets.
Governor Kuroda commented on the Tokyo Stock Market that the Nikkei Stock Average temporarily fell below ¥ 19,000 for the first time in one year and three months, and that the New York market saw its stock price drop sharply every day. There has been a great deal of uncertainty about how long the spread of the new coronavirus will end. "
In addition, he said, `` We will monitor the impact of the spread of infection on the economy and prices and the future trends of domestic and foreign financial markets, and take appropriate measures without hesitation as necessary, '' He emphasized the idea of aggressively purchasing ETFs, which are made up of a large number of stocks, and providing ample funds.
On the other hand, regarding the ETFs that the Bank of Japan has purchased so far, Governor Kuroda said, "According to the status of holding until the end of September last year, if the Nikkei average stock price is around 19,000 yen, the market value will be below book value. It will be about 500 yen higher. "If the stock price goes down from now on, it is clear that there is a possibility that the purchased ETF may have an unrealized loss.