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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