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BOJ's huge stock-buying program reaches its limits

Time to consider reducing purchases, which distort valuations and raise governance questions

| Japan
Bank of Japan Gov. Haruhiko Kuroda's stock-buying program is reaching its limit.

The Bank of Japan has for years bought Japanese stocks as part of its massive monetary easing program to lift the country out of deflation and hit a 2% price-stability target.

Under governor Haruhiko Kuroda's quantitative and qualitative monetary easing (QQE) plan, stock-buying through exchange-traded funds started in 2013 at a pace of about 1 trillion yen annually, expanding to about 3 trillion yen in October 2014, and further to about 6 trillion yen in July 2016.

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