Bank of Japan leaves monetary policy unchanged


The Bank of Japan (BoJ) said today it would leave monetary policy unchanged amid growing signs the world's second-largest economy was heading for a cyclical upturn.

The central bank decided to keep the level of liquidity in the financial system by leaving unchanged the level of reserves at its current account around 10 trillion to 15 trillion yen.

The BoJ repeated it would provide extra liquidity if there was a risk of financial market instability, such as a surge in liquidity demand.

The chances of the central bank adopting any radical new policy have diminished as fears of a financial crisis subside and business sentiment shows sign of improvement on hopes of an export-led economic recovery, analysts said.

Markets barely registered the outcome of the latest meeting, dealers said.