ID :
19858
Wed, 09/17/2008 - 10:03
Auther :
Shortlink :
http://m.oananews.org//node/19858
The shortlink copeid
BOJ pumps 2.5 tril. yen into market after Lehman Brothers failure
TOKYO, Sept. 16 Kyodo - The Bank of Japan injected 2.5 trillion yen into money markets Tuesday in an effort to mitigate domestic market disruption following the failure of U.S. investment bank Lehman Brothers Holdings Inc.
The central bank provided 1.5 trillion yen in the morning and another 1
trillion yen in the afternoon via same-day liquidity-supplying operations, its
first in two and a half months.
The weighted average of unsecured overnight call money rates, the key interest
rate applied to banks borrowing from each other, ended the day at 0.524
percent, up 0.056 percentage point from Friday and slightly above the BOJ's
target of 0.5 percent.
''The Bank of Japan will carefully monitor recent circumstances surrounding
U.S. financial institutions and their influence,'' BOJ Governor Masaaki
Shirakawa said in a statement released early in the morning before the market
opened. Japanese markets were closed Monday for a national holiday.
Shirakawa said the central bank will ''continue to strive to ensure smooth
settlement of funds and maintain stability in financial markets through
measures such as appropriate money market operations.''
The Japanese central bank's latest injection of liquidity into the markets
follows those of the U.S. Federal Reserve and other major central banks,
including the European Central Bank and the Bank of England.
On Monday, the Fed pumped a total of $70 billion into money markets via two
rounds of open-market operations. The ECB supplied 30 billion euros earlier
Monday to eurozone money markets.
The BOJ is expected to discuss the financial market turbulence stemming from
the collapse of Lehman Brothers, the fourth-largest U.S. securities house,
during its two-day policy meeting through Wednesday.
Lehman Brothers, hit hard by the subprime crisis, filed for bankruptcy
protection Monday as bailout talks over the weekend faltered.
Lehman's Japanese unit, Lehman Brothers Japan Inc., also filed for protection
from creditors with the Tokyo District Court on Tuesday.
==Kyodo
The central bank provided 1.5 trillion yen in the morning and another 1
trillion yen in the afternoon via same-day liquidity-supplying operations, its
first in two and a half months.
The weighted average of unsecured overnight call money rates, the key interest
rate applied to banks borrowing from each other, ended the day at 0.524
percent, up 0.056 percentage point from Friday and slightly above the BOJ's
target of 0.5 percent.
''The Bank of Japan will carefully monitor recent circumstances surrounding
U.S. financial institutions and their influence,'' BOJ Governor Masaaki
Shirakawa said in a statement released early in the morning before the market
opened. Japanese markets were closed Monday for a national holiday.
Shirakawa said the central bank will ''continue to strive to ensure smooth
settlement of funds and maintain stability in financial markets through
measures such as appropriate money market operations.''
The Japanese central bank's latest injection of liquidity into the markets
follows those of the U.S. Federal Reserve and other major central banks,
including the European Central Bank and the Bank of England.
On Monday, the Fed pumped a total of $70 billion into money markets via two
rounds of open-market operations. The ECB supplied 30 billion euros earlier
Monday to eurozone money markets.
The BOJ is expected to discuss the financial market turbulence stemming from
the collapse of Lehman Brothers, the fourth-largest U.S. securities house,
during its two-day policy meeting through Wednesday.
Lehman Brothers, hit hard by the subprime crisis, filed for bankruptcy
protection Monday as bailout talks over the weekend faltered.
Lehman's Japanese unit, Lehman Brothers Japan Inc., also filed for protection
from creditors with the Tokyo District Court on Tuesday.
==Kyodo
