BoJ switches to target monetary base

Meeting on Monday 19 March the Bank of Japan, as expected, acted effectively to reduce interests to zero. However this is to be achieved by shifting the BoJ's operational target for money markets from the conventional unsecured overnight call rate to the balance of current accounts held by financial institutions at the central bank.

Specifically, the bank will boost money supply to financial markets by increasing the current account balance to about 5 trillion yen from its present 4 trillion