Since the Bank of Japan shifted its monetary policy emphasis toward quantitative easing a year ago, the daily balance of funds held in its current account has more than trebled.
By setting a higher target for commercial bank reserves in its current account, the BOJ aims to provide interbank lending markets with virtually interest-free money.
The BOJ has also increased its outright purchases of government bonds. Its monthly purchases of long-term government bonds now constitute a 2.5-fold increase over the previous year's level.