The Bank of Japan (BOJ) is set to initiate a significant policy shift by selling its ¥83 trillion ETF portfolio starting January 2026. This move marks a departure from the long-standing Abenomics-era stimulus measures. The central bank plans to offload ¥330 billion in ETFs annually, with adjustments based on market conditions. In addition to the ETF sales, the BOJ is expected to raise its policy interest rate from 0.50% to 0.75% during its meeting on December 18-19. This rate hike and the ETF sales are part of a broader strategy to counter years of economic stimulus and align with global regulatory priorities, including countering the financing of terrorism.