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Money Market Operations in FY2001

July 4, 2002
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 its guidelines for money market operations, in fiscal 2001, the Policy Board of the Bank of Japan raised the target level of the aggregate balance of current account deposits held at the Bank in several steps. Accordingly, more ample funds were provided to the market, and, as a result, short-term interest rates fell to near-zero levels and under-subscription for fund providing operations was not uncommon. Against this background, the Bank sought to effectively implement guidelines for money market operations through the enhancement of operational tools and more attentive market monitoring.