The Bank of Japan on Wednesday left its ultraloose monetary policy untouched and decided to continue allowing financial market liquidity to fall briefly below its target range amid easing concerns over the country's once-shaky financial system.
After its two-day regular meeting ended, the Policy Board maintained its stance adopted in the previous meeting that liquidity can fall short of the target when demand from financial institutions is exceptionally weak.
"As a whole, there is a sense of a funding glut (among financial institutions) and it will get stronger. That is why we left the statement unchanged," BOJ Gov. Toshihiko Fukui told reporters.
At the same time, the board maintained its target of keeping the outstanding balance of banks' deposits at the central bank within a range of 30 trillion yen to 35 trillion yen.
Fukui said two out of nine board members voted against the decision, adding that the two members stated the BOJ should lower the target.
Since March 2001, the BOJ has maintained its quantitative easing monetary policy.