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BOJ Nishimura:End Of Funding Steps Doesn't Mean Change Of Stance

TOKYO -(Dow Jones)- Bank of Japan Deputy Gov. Kiyohiko Nishimura indicated that ending fund provision measures designed to fight the effects of the financial crisis late last year doesn't mean a change in the BOJ's easy policy stance, the text of a speech released by the central bank showed Wednesday.

"Although the balance sheets of central banks may be reduced when these unconventional measures are faded out, this is not a sign of a change in the stance of central banks," Nishimura said at the CME Group's Global Financial Leadership Conference held Nov. 2.

"Rather, this is the sign that central banks can now use conventional means more effectively to pursue current monetary policy."

The BOJ decided last week to scrap outright buying of commercial paper and corporate bonds on Dec. 31 as scheduled, and to end a special lending facility to provide three-month funds at 0.1% at the end of March.

The policy board also kept its policy target rate at 0.1%, and Gov. Masaaki Shirakawa clearly said at a post-meeting press conference that the central bank will keep extremely accomodative conditions.

-By Megumi Fujikawa, Dow Jones Newswires; 813-6895-7559; megumi.fujikawa@ dowjones.com

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  11-03-092021ET
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