TEXT-BOJ statement on fixed-rate fund-supply operation

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TOKYO, March 17 (BestGrowthStock) – The Bank of Japan eased monetary
policy further on Wednesday as expected after a drumbeat of
government pressure for fresh action to beat deflation, but the
split vote suggests the board may have had difficulty justifying
the move.

The central bank, in a 5-2 vote, decided to expand the scale
of a fund supply tool it adopted in December to 20 trillion yen
from 10 trillion yen, and the duration of the fixed-rate loans
was left at three months.

The bank’s main policy rate was kept on hold at 0.1 percent
by a unanimous vote, as widely expected.

Following is the BOJ’s statement issued after the meeting on
its fixed-rate fund-supplying operation:

The Fixed-Rate Funds-Supplying Operation against Pooled
Collateral

The Bank of Japan, based on the results of the Monetary
Policy Meeting held today, will in principle conduct the
fixed-rate funds-supplying operation against pooled collateral in
the following manner.

1. Duration:

Three months.

2. Frequency:

Twice a week.

3. Amount of loans provided at each operation:

Approximately 800 billion yen.

The total amount of loans to be provided through this
operation will increase to approximately 20 trillion yen from the
current amount of approximately 10 trillion yen.
Investment Research

(Compiled by Chris Gallagher)

TEXT-BOJ statement on fixed-rate fund-supply operation