SINGAPORE (MktNews) - The Bank of Japan (BOJ) announced Monday a major shift inits monetary policy, deciding to add significant reserves to the banking system to try and enddeflation and thereby allow the key overnight lending rate fall to near zero. In a historic step, the BOJ decided to target reserves growth, rather than interest rates, andso increased its target for daily banking reserves to Y5 tln from the previous target near Y4tln. The new policy will be maintained until consumer prices stabilise above zero, the centralbank said. The BOJ will let the market set the key overnight interest rate, within limits. Initially the newpolicy would let overnight rates fall to near zero from the current 0.15% target, with thecentral bank managing interest rates through its new Lombard facility, the central bank said. The BOJ said it would purchase additional Japanese government bonds (JGBs), ifnecessary, above the current Y400 billion limit to implement its new reserves target.