CCTV.com - CNTV English - CCTV News

BOJ injects 15 trln yen into market

03-15-2011 09:13 BJT Special Report:9.0 Magnitude Earthquake Rocks Japan |

Watch Video

Play Video

Japan's central bank is set to inject a record 15 trillion yen into the money markets. It's also doubled its asset buying scheme, to ease the liquidity shortage facing the quake and tsunami-ravaged country. Analysts say the move shows the central bank's determination to keep borrowing costs low and stable.

As Japan struggles to gauge the economic cost of its worst crisis since World War Two, the Bank of Japan moved quickly to try to keep financial markets stable.

The Bank of Japan is offering to pump a record 15 trillion yen, or 183 billion U.S. dollars, into the money market. It may also ease its ultra-loose policy further to calm the country's jittery markets.

Masaaki Shirakawa, governor of the Bank of Japan, speaks during a news
conference, in Tokyo, Japan, on Monday, March 14, 2011. The Bank of Japan
poured a record amount of cash into the financial system and doubled the
size of its asset-purchase plan to shield the economy from the effects
of the nation's strongest earthquake on record.

Masaaki Shirakawa, Governor of Bank of Japan said "The Bank of Japan will do its best to ensure stability in the financial markets, and supply adequate liquidity. Rest assured that the central bank and commercial banks will work together to provide enough cash."

Meanwhile, the central bank board also decided - by a vote of 8-1 - to expand a fund pool for buying assets and conducting market operations. It will expand a collateral of 5 trillion yen, to 40 trillion yen.

The move is aimed at preventing a worsening of business sentiment and risk-aversive behavior in the financial markets. The BOJ unanimously decided to keep its key rate on hold at near zero.

But some analysts say the central bank may go even further, as the extensive damage caused by the quake becomes gradually apparent.

Editor:Xiong Qu |Source: CNTV.CN

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program