The Bank of Japan will keep its ultraloose monetary policy intact -- but may be inching toward tightening as concerns over the once-shaky financial system recede.
After its two-day meeting ended Friday, the BOJ Policy Board left its policy untouched, but stated that it would tolerate a reduction in financial market liquidity below its target range.
The BOJ said it aims to keep the outstanding balance of banks' deposits at the central bank within a range of 30 trillion yen to 35 trillion yen.