Japan plans to use additional proceeds from increased Bank of Japan ETF sales to redeem bonds issued for public spending on crisis management, economic security and growth areas, Prime Minister Sanae Takaichi said on November 6. The BOJ decided on October 30 to raise annual ETF sales to 860 billion yen ($5.5 billion) from 330 billion yen. Part of the central bank’s annual net profit, including proceeds from ETF sales, is transferred to state coffers. Takaichi’s administration is seeking non-tax revenue to finance ambitious investment plans without relying too heavily on additional debt issuance, as a sharp selloff in AI and chip stocks threatens tax revenue and complicates the BOJ’s plans for further interest-rate increases. The Nikkei average fell more than 5% on Friday after concerns about a pullback in AI spending following the Democrats’ midterm-election sweep. The BOJ kept rates steady last month but has maintained its focus on inflation risks, supporting market expectations for a possible December hike from its current 1.25% policy rate.