As for the overnight call money
rate, Nobuyuki Nakahara, Teizo Taya and Kazuo Ueda were opposed to keeping the target rate around 0.
The central bank's Policy Board voted unanimously to keep the target rate for unsecured overnight call money
The new rate matches the low seen in May and June of 1999, when the central bank guided the call money
rate to nearly zero.
Further monetary easing measures would include a return to the zero interest rate policy, under which the target for the call money
rate is driven to around zero.
The BOJ's interest rate cut would be the first since March 2001, when the bank introduced the ''quantitative easing'' policy, under which the central bank flooded the financial system with ample liquidity in order to drive the interest rate for unsecured overnight call money
to near zero.
12, when it lowered its target rate on unsecured overnight call money
-- the main tool for steering central bank policy -- to 0.
The central bank provided liquidity as overnight call money
rates on borrowings by foreign banks were slightly higher than the BOJ's official target of around 0.
12 to steer the current policy tool, the target rate on unsecured overnight call money
, down to 0.
The bank injected 600 billion yen in the morning, but withdrew 300 billion yen in the afternoon in response to falls in overnight call money
lending rates after the morning injection.
The BOJ's traditional policy of steering interest rates has only a limited effect on the economy, Nakahara said, adding expanding the monetary base is necessary on top of guiding lower the unsecured overnight call money
8 trillion yen from the money market in view of a temporary excess of funds as unsecured overnight call money
rates applied to interbank borrowing slipped below the BOJ's official target of around 0.
02% paid to call money
dealers, the rate created a possibility of falling into the minus column, making itself an ineffective policy tool for the BOJ.