Printer Friendly

Call rate weighted average falls to zero.

TOKYO, June 9 Kyodo

The weighted average of unsecured overnight call loan rates dropped to zero for the first time in the Tokyo market Monday, money traders said.

The rate fall reflects the Bank of Japan's ultra loose monetary policy that has weakened financial institutions' need of tapping the market for loans, the traders said.

Loan rates dropped on the weighted average due to the continuation of deals between foreign banks at rates below zero, in which lenders pay interest to borrowers. On Monday, a deal was done at minus 0.03%.

The unusual transactions have become possible as foreign banks can raise yen through foreign exchange swaps at lower rates.
COPYRIGHT 2003 Kyodo News International, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2003 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Japan Weekly Monitor
Date:Jun 16, 2003
Previous Article:Dollar rises back to mid-118 yen on intervention wariness.
Next Article:Sumitomo Trust pays 6.3 bil. yen in back taxes.

Related Articles
BOJ further eases credit conditions.
Key money rate plunges close to zero on Tokyo market.
BOJ injects liquidity, banks' account balance at 5-month high.
2ND LD: Unsecured call rate moves below zero for 1st time.
Unsecured call money rate falls to 0.000%.
Call money rate falls below zero for 1st time in 4 months.
Call money rate falls below zero for 2nd straight day.
Current account deposit balance falls below 30 tril. yen Tues.
Kyodo economic news summary -2-.
LEAD: N.Y. stocks end lower on concern about U.S. economy.

Terms of use | Privacy policy | Copyright © 2021 Farlex, Inc. | Feedback | For webmasters |