(Note 2)
(Note 1)

December 9, 2019

Financial Markets Department

Bank of Japan

Review of the Benchmark Ratio Used to Calculate the Macro Add-on

Balance in Current Account Balances at the Bank of Japan

The Bank of Japan decided to review the Benchmark Ratio used to calculate the Macro Add-on Balance in financial institutions' current account balances at the Bank, to which a zero interest rate is applied, as follows.

Note 1: The Benchmark Ratio stipulated in Paragraph 4. (3) (a) of the "Principal Terms and Conditions of Complementary Deposit Facility."

The Benchmark Ratio during the December 2019, January and February 2020 reserve maintenance periods: 31.5%

The Policy-Rate Balance in financial institutions' current account balances at the Bank, to which a negative interest rate is applied, will be about 5 trillion yen on average during the above three reserve maintenance periods, if arbitrage transactions take place in full among financial institutions.

The Benchmark Ratio during the March, April, and May 2020 reserve maintenance periods will be announced on March 9, 2020 at 5 p.m.

Note 2: The amount stipulated in Paragraph 4. (3) (a) of the "Principal Terms and Conditions of Complementary Deposit Facility" for the above three reserve maintenance periods will be calculated by multiplying the Benchmark Balance by the Benchmark Ratio.

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Bank of Japan published this content on 09 December 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 December 2019 08:40:07 UTC