Tuesday, March 12, 2013
DJ: BOJ Discussed Various Options For Further Easing At Feb Meeting
TOKYO--The Bank of Japan discussed various options for additional future monetary easing at its February policy board meeting, ranging from buying longer-term JGBs to lowering interest paid to excess reserves that commercial banks deposit with the central bank.
One member said integrating JGB purchases under its asset-purchase program with those purchased through market operations is one option, while some members said expansion of risk assets under the program might be possible.
"If the BOJ consolidated these two types of purchases, this would provoke a discussion on how to deal with the banknote rule," one member said, according to the minutes of the Feb. 13-14 policy board meeting released by the central bank Tuesday.
At the meeting, the BOJ decided to keep its key monetary policy unchanged, with less than a month having elapsed since it introduced a landmark 2.0% inflation target and took additional easing steps.
The board decided to maintain the size of the asset purchase program--its main tool for monetary easing--at Y101 trillion by the end of the year and also voted unanimously to leave its key policy rate unchanged in a 0.0%-0.1% range.
But one policy board member, Ryuzo Miyao, proposed for the second consecutive month that the central bank keep its policy rate around zero until its 2% inflation target is in sight. Mr. Miyao's proposal was voted down 8-1.