Bank of Japan Meeting minutes

"The Bank, in accordance with the guideline decided at the previous meeting on June 15 and 16, 2016, had been providing funds through purchases of Japanese government bonds (JGBs) and other measures. 6 In this situation, the amount outstanding of the monetary base had been in the range of 394-406 trillion yen.

B. Recent Developments in Financial Markets In the money market, interest rates on both overnight and term instruments had generally been in negative territory. The uncollateralized overnight call rate had been in the range of around minus 0.03 to minus 0.06 percent. As for interest rates on term instruments, yields on three-month treasury discount bills (T-Bills) had been at around minus 0.3 percent.

The Nikkei 225 Stock Average had increased, reflecting the rise in U.S. and European stock prices and speculation about the direction of fiscal and monetary policy in Japan, and was moving at around 16,500 yen recently. In the foreign exchange market, the yen had appreciated temporarily against the U.S. dollar following the United Kingdom's referendum, but had depreciated thereafter, partly due to speculation about the direction of fiscal and monetary policy in Japan, while investors' risk aversion had moderated. Meanwhile, the yen had appreciated against the euro. Yields on 10-year JGBs had moved further into negative territory under a tight supply-demand balance, due in part to anticipation of additional monetary easing by the Bank. C. Overseas Economic and Financial Developments Overseas economies continued to grow at a moderate pace, but the pace of growth had somewhat decelerated, mainly in emerging economies.

The U.S. economy had been on a recovery trend, assisted by firmness in the employment and income situation and in household spending, although the industrial sector had lacked momentum, mainly against the background of the slowdown in emerging 5 Reports were made based on information available at the time of the meeting. 6 The guideline was as follows: 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. 4 economies".