The central bank decided to ease monetary policy by guiding the target for the unsecured overnight call money
rate from 0.
After the market commenced the afternoon session, most overnight call money
transactions were established below the BOJ's target line.
The weighted average of call money
rates slumped to 0.
Nakahara said it is necessary "to demonstrate as clearly as possible the bank's critical view of the condition of the economy," adding he considered it appropriate to slightly lower the level of the unsecured overnight call money
rate "to give what boost possible to monetary aggregates.
21 to raise the unsecured overnight call money
rate to 0.
The rate rise stems from the central bank's decision July 14 to end its six-year-old, zero-interest-rate policy and steer the unsecured overnight call money
rate from zero toward 0.
The BOJ is expected to raise the unsecured overnight call money
rate to 0.
I'm sure people will judge that the two issues are totally different matters if they watch the course of monetary policy from now,'' the BOJ chief said, signaling that the central bank will decide when to raise the unsecured overnight call money
rate from near zero regardless of political pressure.
The injection, the first in two weeks, came as the benchmark unsecured overnight call money
rate rose sharply to 0.
The Bank of Japan pumped 500 billion yen into the money market on Thursday via open-market operations to stem a rise in overnight call money
Following the supply operation and the bond-buying notification, the benchmark unsecured overnight call money
rate moved mostly at 0.
It is the second month in a row for the IBJ to cut the rate, which comes amid a decline in long-term rates following the Bank of Japan's decision to trim its target rate for unsecured overnight call money
last week to around 0.