The Bank of Japan’s policy-setting panel voted at its one-day meeting Wednesday to maintain its ultra-easy monetary policy, according to the central bank.

The nine-member BOJ Policy Board voted unanimously to continue injecting an ample supply of funds into money markets to keep the outstanding balance of current account deposits at the BOJ by private financial institutions between 10 trillion yen and 15 trillion yen.

The meeting was the policy panel’s second this month. The last meeting was held on June 11-12.

The BOJ’s decision reflects the recently stable economic situation, which shows signs of bottoming out on the heels of increasing exports and improving corporate production.

But the recovery is seen as fragile as it is being led by exports, which depend largely on the future course of the U.S. economy. Recent declines in U.S. stocks and a weakening dollar point to increasing concerns about the strength of the U.S. economy.

Domestic demand in the private sector has remained weak, indicating the current improvement is far from being a self-sustaining recovery.

The BOJ panel apparently decided to maintain its ultra-easy policy to support the budding signs of recovery.

In its statement released after the meeting, the BOJ said it is ready to provide more funds regardless of the target to stem risks of financial market instability, such as a surge in liquidity demand.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.