18 December 2001, 09:11  Shiokawa - Govt hopes BoJ raises current-account reserves to over 14 trln yen

TOKYO (AFX-ASIA) - Finance Minister Masajuro Shiokawa said the government hopes that the Bank of Japan will increase the level of current accounts held at the bank towards the year-end beyond the 14 trln yen seen in November. An increase in the level of current accounts eases monetary conditions. "I have been pressing for (BoJ) governor (Masaru) Hayami to provide ample liquidity," Shiokawa said, adding though that the bank must make the decision. "Fund demand will increase towards the year-end, so I hope the BoJ will increase current-account levels to beyond the 14 trln yen seen in November." BoJ governor Masaru Hayami last week said it would be very difficult for the bank to buy foreign bonds to further ease policy, as has been speculated. However, some economists believe that the bank may instead expand the use of existing monetary tools due to concerns over the need for year-end funds and to harmonise policy with the government' plan for more fiscal stimulus.

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