TOKYO -- The Bank of Japan will stop publishing year-end figures on the monetary base, in keeping with its new policy of seeking to control the yield curve rather than the money supply.
The central bank always publishes the results of its market operations such as funds supplying on the following business day. The bank also has issued updates on the monetary base on the final business day of the past three years, helping financial markets track BOJ progress toward its goal at the time of increasing the money supply by around 80 trillion yen ($680 billion) annually.
But BOJ policymakers at their Sept. 21 meeting shifted the bank's target from the pace of monetary base growth to interest rates. The central bank now maintains a short-term policy rate of minus 0.1% and seeks to keep 10-year government bond yields around zero. The BOJ says it "will continue expanding the monetary base" until consumer price inflation overshoots its 2% target, but the bank no longer aims for a specific rate of expansion.
The bank considers that continuing the special year-end updates on the money supply may send the wrong message about its objectives. Figures for the end of 2016 will be published Jan. 4, the first business day of 2017.