Central bank Bank of Japan has revealed it will inject a total JPY 15 trillion ($183.8 billion) into the country’s financial system, in a bid to stabilise the markets after the devastating earthquake hit the country on Friday, March 11.
Meanwhile, ratings agency Moody’s said the economic impact of Japan disaster is greater than initially expect and it is concerned about Japan’s ability to reduce fiscal deficit in the medium term.
This morning (Monday, March 14), the (BoJ) initially conducted a same-day funds-supplying operation totalling JPY 7 trillion, which was the largest amount ever conducted, and a future-day-start funds-supplying operation totalling JPY 3 trillion.
The BoJ said in a statement that it “will do its utmost to continue ensuring stability in the financial markets and securing smooth settlement of funds, including providing liquidity.”
BoJ authorities will meet at 12:00 Japanese time for an interest rate review and is tipped to ease monetary policy.
On Friday, March 11, a massive earthquake that measured 8.9 on the Richter scale hit Japan. The quake hit off the North Eastern coast and caused a 10-metre-high tsunami to hit the coast. Japan authorities reported there is a nuclear power emergency situation with four million homes without power, following the largest earthquake to hit Japan on record. Meteorological agencies are also reporting that there is a 70% chance of aftershocks with magnitude of 7 or higher to hit Japan.