29 October 2001, 09:15  BOJ leaves policy unchanged, keeps ultra-easy stance

TOKYO, Oct. 29 (Kyodo) - (EDS: ADDING MORE DETAILS) The Bank of Japan (BOJ) decided at a Policy Board meeting Monday to leave its monetary policy unchanged, sticking to its current ultra-easy monetary stance but not adopting new easing steps. After the one-day meeting of the nine-member Policy Board, the central bank said it decided by a majority vote to maintain the current policy of providing sufficient funds to the money market. "The Bank of Japan will provide ample liquidity to the money market by aiming at maintaining the outstanding balance of current accounts held at the bank at above 6 trillion yen," the BOJ said in a statement. At its Sept. 18 meeting following the terrorist attacks in the United States, the BOJ's policy-setting panel decided to pump more money into the market by raising the balance of current accounts held at the BOJ by private financial institutions to more than 6 trillion yen from around 6 trillion yen. The BOJ appears to have decided to leave its policy unchanged this time because it believed financial conditions are already eased sufficiently amid a weakening demand for funds, financial analysts said. The relative calmness in the Japanese stock markets and the currency markets may also have influenced its decision, they said. At the day's meeting, the BOJ board discussed the central bank's price outlook report, which was released later in the day.

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