The Bank of Japan convened a two-day meeting of its Policy Board on Thursday to discuss ways of refining its credit-easing tools in a bid to ensure that its current quantitative-easing policy will not be undermined.
The board is likely to adopt a measure to increase the BOJ's outright purchases of long-term government bonds to 1 trillion yen per month from the current 800 billion yen per month, according to BOJ sources and market analysts.
This might help deal with the difficulty the BOJ is having in pumping enough excess cash into commercial banks that they can maintain combined current-account deposits in the target range of 10 trillion yen to 15 trillion yen.