First is the rationale behind having the outstanding balance of Bank of Japan current accounts as the main operating target and increasing it. The target of increasing the outstanding balance of current accounts to around 5 trillion yen is substantially more than required reserves of around 4 trillion yen.
As previously mentioned, under such ample provision of liquidity, short-term interest rates will move close to zero percent under normal circumstances. In addition to a decline in interest rates, it is hoped that the quantitative increase in Bank of Japan current accounts itself will have positive effects.