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Home > Research and Studies > Bank of Japan Working Paper Series, Review Series, and Research Laboratory Series > Market Review E-series > Money Market Operations in FY2002
Open Market Operations Division
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In FY2002, the Bank of Japan (hereafter, the Bank) continued to provide ample liquidity under the high target level for current account balances held at the Bank. In the short-term money markets, the uncollateralized O/N call rate remained close to 0%, and for financial institutions, the opportunity cost of holding current account deposits at the Bank was negligible. As a result, demand for current account deposits at the Bank fluctuated widely, and a decrease in demand gave rise to under-bidding for fund providing operations, while an increase prompted greater needs for such operations. The Bank, bearing in mind these wide fluctuations in demand for current account deposits, sought to effectively implement the guidelines for money market operations and maintain stability in the money markets through the enhancement of operational tools and attentive market monitoring.