The Bank of Japan maintained its ultraloose monetary policy Wednesday, leaving the current account balance target unchanged at 30 trillion yen to 35 trillion yen.
The nine-member Policy Board decided by a 7-2 vote after a two-day meeting to maintain the liquidity target for the outstanding balance of current account deposits held by private financial institutions at the central bank.
The BOJ said that it there is a risk of financial market instability, such as a surge in liquidity demand, it will provide more liquidity irrespective of the target.
It also said the balance of current accounts may fall short of the target if liquidity demand is exceptionally weak.
The decision was widely expected as the central bank has pledged to maintain its quantitative easing until consumer prices begin rising steadily.
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