The Bank of Japan (BoJ) has taken a major step to stabilise the country’s financial system following the devastating earthquake that hit Japan on Friday March 11, after officially pumping JPY 7 trillion ($85 billion) into the money markets.
This morning (Monday 14. March), the (BoJ) 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.
JGB 2-year has plunged by over 20%.
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.