BoJ to inject $8.7b into banking system
Tuesday, 21 August 2007
TOKYO, Aug 20 (AFP): Japan's central bank said today that it would inject 1.0 trillion yen (8.7 billion dollars) into the banking system as part of ongoing efforts to restore calm to financial markets.
The Bank of Japan (BoJ) moved to pump extra funds into the money market for a third straight working day as part of a concerted global drive by major central banks to calm fears about the fallout from US mortgage problems.
The latest injection came as Japanese share prices staged a strong rally after Friday's brutal selloff, lifted by a rebound on overseas markets following the US central bank's decision to cut a key interest rate Friday.
The BoJ's move aims to curb a rise in short-term interest rates caused by increased demand for new funds.
Central banks from Sydney to Washington have together pumped billions of dollars into the global financial system in recent days amid signs that private banks and firms are having trouble raising funds and rolling over debt.
The Bank of Japan (BoJ) moved to pump extra funds into the money market for a third straight working day as part of a concerted global drive by major central banks to calm fears about the fallout from US mortgage problems.
The latest injection came as Japanese share prices staged a strong rally after Friday's brutal selloff, lifted by a rebound on overseas markets following the US central bank's decision to cut a key interest rate Friday.
The BoJ's move aims to curb a rise in short-term interest rates caused by increased demand for new funds.
Central banks from Sydney to Washington have together pumped billions of dollars into the global financial system in recent days amid signs that private banks and firms are having trouble raising funds and rolling over debt.