The Bank of Japan maintained its ultra-easy monetary policy Wednesday, leaving the current account balance target unchanged at a range of 30 trillion yen to 35 trillion yen, in line with analysts’ predictions.
The nine-member BOJ Policy Board decided in a majority vote of seven to two after a one-day meeting to maintain the liquidity target of the outstanding balance of current account deposits held by private financial institutions at the central bank.
The BOJ said that should there be a risk of financial market instability, such as a surge in liquidity demand, it will provide more liquidity irrespective of the target.
When liquidity demand is exceptionally weak, the balance of current accounts may fall short of the target, it said.
BOJ Gov. Toshihiko Fukui said at a news conference after the previous policy meeting on July 13 that the economy is about to emerge from its current pause.
His comments came after the central bank raised its assessment of the economy for the first time in four months. The BOJ’s “tankan” quarterly survey released July 1 also showed business sentiment among major manufacturers improved. But the central bank is apparently seeking more hard evidence of recovery.
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