BOJ pumps 1.6 tril. yen into money market on 12th day of operations

TOKYO, Oct. 2 Kyodo - The Bank of Japan injected a total of 1.6 trillion yen into the Tokyo money market Thursday, with repayment due by Oct. 9 at the latest, in a bid to further facilitate interbank borrowing, especially by foreign financial institutions.

The latest injection is the central bank's 12th straight business day of
emergency operations since the fall of U.S. investment bank Lehman Brothers
Holdings Inc. on Sept. 15.
After pouring 1 trillion yen into the money market in the morning, the central
bank injected an additional 600 billion yen in the afternoon.
However, the central bank absorbed 400 billion yen from the market later in the
day, apparently to prevent short-term borrowing rates for domestic banks from
falling too low, bringing the total amount of funds the BOJ has injected in the
past 12 business days to 23.5 trillion yen.
Overnight call money rates on borrowing by foreign banks have stood at the 0.7
percent level recently, well above the BOJ's official target of around 0.5
percent. By contrast, overnight borrowing rates for domestic banks have stood
at around 0.4 percent.
==Kyodo