The Bank of Japan skipped an open market operation Friday for the injection of funds into the banking system, an indication the BOJ is allowing the balance of commercial banks' reserves to remain below the central bank's liquidity target for the second straight day.
The outstanding balance of current account deposits held by private banks at the central bank was expected to be 29.38 trillion yen for Friday, money market sources said.
On Thursday, the BOJ allowed the balance to fall below its monetary policy target.