The outstanding balance of current account deposits held by private financial institutions at the Bank of Japan returned Monday to the central bank's liquidity target range of 30 trillion yen to 35 trillion yen for the first time in three business days.
The current account balance stood at 30.75 trillion yen, up about 1.3 trillion yen from Friday, BOJ officials said. The balance rebounded partly because of the redemption of three-month financial bills that resulted in a shift of money from the state coffers back to the current account deposits.
The central bank's fund-injecting operations also helped raise the current account balance, the officials said.
In the face of weakening demand by financial institutions for excess funds, the BOJ on Thursday allowed the current account balance to fall below its monetary policy target for the first time since it introduced its quantitative easing policy in March 2001.