Foreign Central Banks
None of the four major central banks has changed its policy setting since the Federal Reserve’s Federal Open Market Committee adopted a 1.75% target for the federal funds rate on September 21. After 10 months, the Bank of Japan’s ¥30–¥35 trillion target for current account balances remains consistent with excess reserves near ¥25 trillion and an overnight interest rate hovering around zero. According to recent remarks of Governor Fukui, “…zero percent [inflation] is merely a passing point,” not an ultimate goal in deciding when Bank of Japan policy might let the overnight rate move above zero.
Suggested citation: "Foreign Central Banks," Federal Reserve Bank of Cleveland, Economic Trends, no. 04-11, pp. 18, 11.01.2004.