The Bank of Japan will conduct money market operations so that the monetary base will increase at an annual pace of about 80 trillion yen.
At the Monetary Policy Meeting (MPM) held today, the Policy Board of the Bank of Japan decided upon the following.
The Bank decided,by an 8-1 majority vote, to set the following guideline for money market operations for the intermeeting period.The Bank of Japan will conduct money market operations so that the monetary base will increase at an annual pace of about 80 trillion yen.
The Bank will purchase Japanese government bonds (JGBs) so that their amount outstanding will increase at an annual pace of about 80 trillion yen. With a view to encouraging a decline in interest rates across the entire yield curve, the Bank will conduct purchases in a flexible manner in accordance with financial market conditions. The average remaining maturity of the Bank's JOB purchases will be about 7-12 years. The Bank will purchase exchange-traded funds (ETFs) so that their amount outstanding will increase at an annual pace of about 3 trillion yen until the end of March 2016 and, from April, at an annual pace of about 3.3 trillion yen. It will also purchase Japan real estate investment trusts (J-REITs) so that their amount outstanding will increase at an annual pace of about 90 billion yen.
As for CP and corporate bonds, the Bank will maintain their amounts outstanding at about 2.2 trillion yen and about 3.2 trillion yen, respectively.Of about 3.3 trillion yen, 300 billion yen will be used in line with the implementation of a new program for purchasing ETFs composed of stocks issued by firms that are proactively investing in physical and human capital, which was decided at the MPM held in December 2015.
The Bank decided,by an 8-1 majority vote, to set the following guideline for money market operations for the intermeeting period.The Bank of Japan will conduct money market operations so that the monetary base will increase at an annual pace of about 80 trillion yen.
The Bank will purchase Japanese government bonds (JGBs) so that their amount outstanding will increase at an annual pace of about 80 trillion yen. With a view to encouraging a decline in interest rates across the entire yield curve, the Bank will conduct purchases in a flexible manner in accordance with financial market conditions. The average remaining maturity of the Bank's JOB purchases will be about 7-12 years. The Bank will purchase exchange-traded funds (ETFs) so that their amount outstanding will increase at an annual pace of about 3 trillion yen until the end of March 2016 and, from April, at an annual pace of about 3.3 trillion yen. It will also purchase Japan real estate investment trusts (J-REITs) so that their amount outstanding will increase at an annual pace of about 90 billion yen.
As for CP and corporate bonds, the Bank will maintain their amounts outstanding at about 2.2 trillion yen and about 3.2 trillion yen, respectively.Of about 3.3 trillion yen, 300 billion yen will be used in line with the implementation of a new program for purchasing ETFs composed of stocks issued by firms that are proactively investing in physical and human capital, which was decided at the MPM held in December 2015.
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