The Bank of Japan (BOJ) pumped a record 4 trillion yen into the Tokyo money market today for the 17th consecutive day of emergency operations to facilitate interbank borrowing.
The BOJ conducted its biggest ever single-day liquidity provision in the money market as credit conditions remained tight amid concerns over the course of the market despite coordinated interest rate cuts by six central banks in North America and Europe on yesterday.
Overnight call money rates remained at around 6 per cent for foreign banks and around 0.55 per cent for Japanese regional banks, both above the BOJ's official target of around 0.5 per cent, even after the BOJ injected 2 trillion yen into the market in the morning.
This prompted the central bank to provide an additional 2 trillion yen in the afternoon.
