BOJ injects liquidity, banks' account balance at 5-month high.
The Bank of Japan injected liquidity into the banking system Monday, bringing the outstanding balance of financial institutions' checking accounts at the BOJ up to a five-month high of 18.2 trillion yen.
The balance is about 3 trillion yen above last Friday's level, reflecting the central bank's resolve to meet seasonal cash demand at the end of fiscal first-half for Japanese banks and many Japanese corporations.
Under its so-called quantitative monetary easing policy, the BOJ used to keep the balance of checking accounts at 10-15 trillion yen but has said it would raise the target if necessary.
On the money market, the benchmark unsecured overnight call rate was briefly quoted at 0.15-0.20% by some banks, a level above the official discount rate that is now 0.1% per year.
But the rate fell to 0.067% on a weighted average basis late Monday against Friday's weighted average of 0.002% after the BOJ injected 500 billion yen into the banking system via an afternoon bill-buying operation for same-day settlements.
|Printer friendly Cite/link Email Feedback|
|Publication:||Japan Weekly Monitor|
|Date:||Oct 7, 2002|
|Previous Article:||Gov't panel calls for market-based financial system.|
|Next Article:||Japan major banks to suffer 3.54 tril. yen paper stock losses.|