Financial Times FT.com

BoJ injects $13bn into market to cut rates

By David Pilling in Tokyo

Published: May 29 2006 09:57 | Last updated: May 30 2006 03:57

The Bank of Japan on Monday injected a massive Y1,500bn ($13.3bn, €10.5bn, £7.2bn) into the money market as it desperately sought to keep overnight interest rates under control.

The injection came as overnight rates once again tested the 0.1 per cent ceiling, calling into question the central bank’s ability to keep rates at “effectively zero” in line with its stated policy.

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