The BOJ board also kept the unsecured overnight call loan rate
on hold at a range of zero percent to 0.
The Bank of Japan has decided to keep its policy rate, the unsecured overnight call loan rate
, within a 0.0 percent to 0.1 percent range.
Bankers noted that late last year, due to the European debt crisis, domestic interbank U.S.-dollar call loan rate
, or TAIFX, jumped to a level 100 points (one point equals 0.01 of a percentage point) higher than LIBOR (London interbank offered rate), thereby dampening U.S.-dollar loans.
Assuming a 15 percent annual call loan rate
, which was somewhat typical for November 1907, a 7-day loan would cost 0.28 percent, or 15 percent divided by 52 weeks.
The Bank of Japan (BOJ) has said that it has decided to keep its unsecured overnight call loan rate
target unchanged in a range of 0.0 percent to 0.1 percent.
The interest rate on an unsecured call loan from Friday through Monday soared to 1 percent on the Tokyo interbank money market Wednesday, against the Bank of Japan's target of 0.5 percent for the uncollateralized overnight call loan rate
The call loan rate
in New York City was a competitive market rate on new loans, and the renewal rate was the average of loan rates observed on that day.
For example, the call loan rate
soared to 21 percent during October 1907 [Macaulay, Movements of Interest Rates, Bond Yields and Stock Prices in the U.S.
Comparison of the two figures shows that the increase in the seasonal amplitude of the call loan rate
during the Depression was small relative to the decline in amplitude in 1914.(37) For comparison, the standard deviation of the seasonal pattern of the call loan rate
between January 1890 and October 1914 is 1.02 (0.67 for the first difference of the call loan rate
For example, the domestic interbank call loan rate
(IBCL) is up by 80 bps from a year ago.
At the end of a two-day policy meeting, Bank of Japan's (BOJ) Governor Masaaki Shirakawa and his six board colleagues also voted unanimously to maintain the unsecured overnight call loan rate
at a range of zero percent to 0.1 percent to support the country's economy.
The central bank's policy board has decided to leave its policy rate, the unsecured overnight call loan rate
, in the range of 0.0 percent to 0.1 percent.