TOKYO (AFX-ASIA) - The Bank of Japan policy board was divided over whether the rise in the balance of current accounts held at the bank has already helped improve financial market conditions, the minutes of the Oct 29 meeting show. Some members said favourable movements in the stock and foreign exchange markets, as well as a shift of funds out of the money market into higher-yielding instruments suggested the move was starting to permeate the economy. However, another attributed the effects to falls in the overnight call rate and US Treasury yields, while one member worried that continuing to pump existing levels of liquidity into the market could eventually fuel inflation. One policy board official noted the "time lag between monetary policy change and the market's reaction to it," and the difficulty of judging whether the market reaction is due to monetary changes. "Based on these discussions, many members agreed that a little more time was required to judge whether the effects of the bank's funds provision ... would permeate further into financial markets," the minutes said. However, "one member said (the provision) could cause inflation at some time in the future, as prices were determined based on the balance between goods and services in the economy and the amount of liquidity." In conclusion, most members agreed that there were no new factors in the economy since the previous monetary board and policy should remain unchanged.