16 October 2003, 09:11  BOJ's Fukuma dissented at Sept 11-12 meet - minutes

TOKYO, Oct 16 - Bank of Japan Policy Board member Toshikatsu Fukuma voted against a decision to keep monetary policy unchanged at a meeting on September 11-12, minutes of the meeting showed on Thursday. The Board decided 8-1 to keep the reserves target at 27-30 trillion yen ($247-274 billion). Fukuma proposed raising the target for banks' current account deposits to 30-35 trillion yen. The proposal was voted down 8-1. Yields on Japanese government bonds surged before the policy-setting meeting, with the yield on the benchmark 10-year cash bond hitting a high of 1.675 percent on September 3. The BOJ decided at the meeting to consider extending the duration of Japanese government bond repurchase agreements to one year. At its latest policy meeting, which ended last Friday, it eased monetary policy by expanding the upper end of the current account deposits target to 32 trillion yen. BOJ Governor Toshihiko Fukui said three members voted against that decision. The BOJ also clarified its stance on ending its current "quantitative easing" framework and decided to extend the duration of repurchase agreements to one year. ($1=109.49 Yen)//

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