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Change in the Guideline for Money Market Operations

April 30, 2003
Bank of Japan

(For immediate release)

  1. At the Monetary Policy Meeting held today, the Bank of Japan decided to change the main operating target in the guideline for money market operations.The target balance of current accounts held at the Bank is raised from 'around 17 to 22 trillion yen' to 'around 22 to 27 trillion yen' (see attachment).The Bank also decided to accept loans on deeds to the Industrial Revitalization Corporation of Japan with government guarantee as eligible collateral.
  2. Economic activity in Japan remains flat.With respect to overseas economies, the prospect of a recovery in the US and European economies still faces considerable uncertainty.The impact of SARS is becoming a matter of concern for Asian economies, which have maintained robustness as a whole.
  3. In financial markets, ample liquidity provided by the Bank has restrained financial institutions' concern over liquidity financing.At the same time, however, stock price developments, especially those of bank stocks, remain weak and volatile.Careful attention is warranted so that the stock price developments will not negatively affect financial markets and economic activity.
  4. Based on the above described uncertainty regarding the economic and financial situation, the Bank thought it appropriate to raise the target balance of current accounts held at the Bank to maintain financial market stability, thereby strengthening support for economic recovery.
  5. For the purpose of promoting the transparency of monetary policy, the Bank also decided to expand the contents of "Outlook and Risk Assessment of the Economy and Prices" released today by adding new sections describing the conduct of monetary policy and a financial environment.


April 30, 2003
Bank of Japan

At the Monetary Policy Meeting held today, the Bank of Japan decided, by unanimous vote, to set the following guideline for money market operations for the intermeeting period:

The Bank of Japan will conduct money market operations, aiming at the outstanding balance of current accounts held at the Bank at around 22 to 27 trillion yen.

For the time being, given that significant uncertainty is likely to persist, the Bank will provide more liquidity irrespective of the above target when necessary to secure financial market stability.


Meeting hours :
April 30th:9:00-13:29

Members present :
Toshihiko Fukui ( Governor )
Toshiro Muto ( Deputy Governor )
Kazumasa Iwata ( Deputy Governor )
Kazuo Ueda
Teizo Taya
Miyako Suda
Shin Nakahara
Hidehiko Haru
Toshikatsu Fukuma

(Others present)

From Ministry of Finance:
Takayoshi Taniguchi, Senior Vice Minister of Finance (9:00-13:07, 13:11-13:29)

From Cabinet Office:
Yuzo Kobayashi, Vice-Minister for Economic and Fiscal Policy (9:00-13:07, 13:11-13:29)

Release of minutes:
2:00 p.m. on Monday, June 16