BoJ injects extra funds for first day in three

0 Comments | AFP, August, 2007

TOKYO (AFP) — The Bank of Japan pumped extra funds into the financial system Thursday for the first time in three days to try to stabilise interest rates as fresh havoc erupted on global financial markets.

The BoJ said it had injected 400 billion yen (3.4 billion dollars) into the money market after draining funds for two straight days.

The Japanese central bank's latest move came as the Tokyo stock market tumbled for a second straight day after another rout overnight on Wall Street, with the Nikkei-225 index going on to finish down almost 2.0 percent.

But analysts said that there was still no sign of a credit squeeze in Japan, where banks are believed to have taken less risks than overseas rivals.

"My understanding is that at the moment the BoJ is...

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