The Bank of Japan on Friday left the balance of its current accounts held by financial institutions at more than 14 trillion yen, the highest level since March 31, 2000, in a bid to hold rates stable, financial industry officials said.
Interest rates were under upward pressure, due partly to the financial problems of U.S. energy giant Enron Corp., at the end of the month, when demand for funds usually strengthens to meet business settlements.
Some money management funds in Japan had fallen below the par value due to the inclusion of securities issued by Enron, which has effectively collapsed. That had made some trust funds reluctant to lend money as they needed funds for cancellations of money management funds, the officials said.