The BOJ reviewed operations for lending funds to financial institutions and changed the interest rate on its climate response operation from fixed to variable. A ¥50 trillion cap was placed on total lending, advancing normalization beyond policy rate hikes.
The BOJ reviewed its open market operations (operations) for lending funds to financial institutions and changed the interest rate on operations aimed at supporting climate change measures from fixed to variable. As a result, a cap was placed on total lending, advancing the normalization of operations.
Under the new framework, total lending was capped at ¥50 trillion. As market participants watched closely, the shift to variable rates was positioned as the main change to operations.
The climate operation was launched in September 2021, and this review was positioned as a redesign of the operation in light of its characteristics.
The key points announced with the September Monetary Policy Meeting’s decision indicated an intention to advance normalization in areas beyond the policy rate.