BOJ Declares Victory Over Deflation, Accelerates ETF Sell-off to 43-Year Cycle

English summary

The Bank of Japan held rates at 1.25%, removed inflation guidance, and declared that underlying CPI now meets the 2% target, signaling the end of deflation. It unexpectedly accelerated ETF sell-offs to ¥860 billion annually, shortening the liquidation cycle from 112 to 43 years. Markets interpreted this as hawkish, but equities reacted mildly due to tech sector corrections.