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Friday May 20, 08:24
BoJ lowers its target temporarily
(by Sh.Nakata)

BoJ lowers its target temporarily

The bank of Japan said it would temporarily lower its target for the injections into Japan’s economy on the weaker demand from lenders.

The central bankers said the shift does not mean total change of the policy but will mark some improvements for the economy that is trying to recover from a long-lasting decline.

The Bank of Japan said its target for reserves available to lenders will be kept at 30 trillion yen ($285 billion) and 35 trillion yen, according to a statement released Friday. This is the first time in four years that the Bank of Japan said there might be some decline in reserves.

The 0.5 percent note due March 2010 added 0.048 to 100.188, with the yield pushed down 1 basis point to 0.46% as of 5:30 p.m. in Tokyo. The yield on the 1.3% bond due March 2015 increased half a basis point to 1.265%. The 10-year yields declined 1.5 basis points for the week. A basis point is 0.01 percentage point.

The bank’s policy will be kept till core consumer prices stop falling at least for a few months, said the BoJ governor Toshihiko Fukui on Friday. ``I don’t think it’s correct to conclude that our decision today means a shift of policy,’’ he added.

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