THE Bank of Japan this morning injected a record 7 trillion yen (£53bn) into the money markets to soothe nerves following the devastating effects of the earthquake and tsunami.
The meeting’s conclusion was brought forward 24 hours in response to the crisis, in a bid to ensure stability in the markets.
The amount, at 7 trillion yen, is unprecedented and much higher than the usual 1 trillion to 2 trillion yen injected in the wake of big market-moving events.
"The move is aimed at stabilising financial markets and ensuring smooth fund settlement," a BOJ official said.
The Bank of Japan had already promised “to do its utmost, including the provision of liquidity, to ensure the stability in financial markets and to secure the smooth settlement of funds, in the coming week”.
In response to the last tragic earthquake, which hit Kobe in 1995, the Bank cut rates by 0.75 per cent. Yet such easing is not available to the Bank this time, with rates already as low as possible.