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Bank of Japan seeks flexibility on $55bn ETF target in bull market

Purchases down 76% this year as central bank looks to rethink strategy

The Bank of Japan has sharply reduced its purchases of exchange-traded funds.

TOKYO -- The Bank of Japan will consider changes to its approach to purchasing exchange-traded funds at its policy board meeting next week, a potentially significant move by the institution that has become the top holder of Japanese stocks.

As the risks of buying in an overheated market become more apparent, some at the central bank have proposed eliminating its 6 trillion yen ($55 billion) annual target in favor of an approach that allows for greater flexibility to adjust to market conditions.

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