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LEAD: BOJ puts 1.2 trillion yen into money market in 19th day operations.

TOKYO, Oct. 14 Kyodo


The Bank of Japan pumped a total of 1.2 trillion yen into the Tokyo money market Tuesday for the 19th straight business day of emergency operations to facilitate interbank borrowing.

The BOJ supplied fresh liquidity into the money market as overnight call money rates on borrowing by foreign banks were at around 0.55 to 0.65 percent levels, above the BOJ's official target of around 0.5 percent.

After pouring 1 trillion yen into the money market in the morning, the central bank injected another 1 trillion yen in the afternoon to calm the market upheaval.

However, the central bank later absorbed 800 billion yen from the market, apparently to prevent short-term borrowing rates from falling too low.

The rates for foreign banks were declining slightly after financial chiefs from the Group of Seven countries crafted an action plan Friday to combat the global credit crunch.

The Tokyo markets were closed Monday for a national holiday.
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Publication:Japan Weekly Monitor
Date:Oct 20, 2008
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