TOKYO, Oct 14 (Reuters) - The Bank of Japan said on Tuesday it would stop selling stocks purchased from financial institutions temporarily after Tokyo stock markets became unstable.
The measure came along with a range of steps to improve money market operations in the wake of the recent global financial market turmoil, announced after an extraordinary policy-setting meeting. [ID:nT50162]
BOJ Governor Masaaki Shirakawa told a news conference that the timing of resuming the sales will depend on market conditions, adding that he has no date in mind.
The Ministry of Finance earlier said the government would also consider temporarily suspending the sale of public sector-owned stocks. [ID:nT216885]
Following is the text released by the BOJ on suspending stock sales held by the central bank.
At a board meeting held today, the Policy Board of the Bank of Japan decided to suspend, for the time being from October 15, 2008, selling stocks purchased from financial institutions on the stock exchanges.
Japan’s stock market has been unstable, reflecting the intensified strains in the global financial markets. Against such a backdrop, in order to gauge market developments, the Bank of Japan has decided to suspend, for the time being, selling purchased stocks on the stock exchanges.
It should be noted that the Bank of Japan will continue with the disposal of the purchased stocks in the cases of buy-backs upon the issuer’s request and tender offers.
The Policy Board will make a decision when the Bank of Japan resumes selling purchased stocks on the stock exchanges. (Reporting by Yoko Nishikawa)