FACTBOX-Details of BOJ’s asset-buying scheme, economic view

TOKYO, Nov 5 (BestGrowthStock) – The Bank of Japan kept interest
rates at zero and held off on easing monetary policy on Friday,
as the Federal Reserve’s bond buying plan failed to trigger yen
gains sharp enough to warrant an immediate policy response.

The central bank fleshed out its plans to buy exchange-traded
funds (ETFs) and real estate investment trust funds (REITs) under
its new 5 trillion yen ($61.94 billion) asset-buying scheme.

Details are as follows:

— The BOJ plans to start buying government bonds under the
asset-buying scheme at the beginning of next week. That will be
followed by purchases of other assets.

— The BOJ will buy exchange-traded funds (ETFs) linked to
the benchmark Topix (.TOPX: ) and the Nikkei average (.N225: ).

— It will buy REITs rated AA, which guarantees very high
creditworthiness, or above. Since it will be the first time the
BOJ has bought REITs, it decided to play it safe and not include
those rated BBB.

— The BOJ will buy ETFs and REITs through a trust bank to
avoid intervening directly in the market.

— When buying REITs, the BOJ will limit its purchases to up
to 5 percent of a particular fund’s total isue amount.

— The maximum amount of each ETF and REIT to be purchased
will be in proportion to each issue’s market value.

— The BOJ adopted somewhat more cautious language in its
economic assessment. It said the Japanese economy still shows
signs of a moderate recovery, but the recovery seems to be
pausing. It downgraded its assessment on exports and production,
saying they have been more or less flat.
($1=80.72 Yen)
(Reporting by Leika Kihara and Rie Ishiguro; Editing by Michael
Watson)

FACTBOX-Details of BOJ’s asset-buying scheme, economic view