Fukui prepares to raise rates

In March, the Bank of Japan announced a change in its monetary policy. This did not involve any change in interest rates, but paved the way for a rise. At the moment commercial banks have more reserves on deposit with the central bank than they are required to hold and, in practical terms, the elimination of these excess balances is a necessary condition for raising interest rates. The change in policy indicates that these balances will now be run down and this appears to be already happening as