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Money Market Operations in FY2000

September 28, 2001
Open Market Operations Division

The views expressed in the Review are those of the authors and do not necessarily represent the views of the Bank of Japan. Comments and questions as well as requests for hard copies should be addressed to Tokiko Shimizu, Manager, Financial Markets Department (

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In FY2000, the Bank of Japan changed the level of its interest rate target on two occasions, and switched its operating target from the overnight call rate to the aggregate balance of current account deposits held at the Bank. Furthermore, facing a major change to the settlement system with the introduction of RTGS (real-time gross settlement) for current accounts at the Bank and JGSs, the Bank realized the importance for the Bank's market operations to be both timely and flexible as ever before. Against this background, the Bank sought to effectively implement the Guidelines for money market operations as determined at the Monetary Policy Meetings of the Policy Board, underpinned by a review of its operation tools and thorough monitoring.