BOJ to inject 7 trillion yen aid shaken Japanese market
The BOJ has rescheduled its meeting – from tomorrow to 1pm (0400 GMT) – to come up with new policies and plans of action as Japanese financial markets re-open today.
Governor Masaaki Shirakawa is planning to increase “massive” liquidity but is likely to keep his stance on the BOJ maintaining its longer-term credit programs at 35 trillion yen.
The bank has already extended 55 billion yen to lenders over the weekend to ensure cash on hand for withdrawals by survivors.
The kneejerk reaction on Friday sent Nikkei lower, and the JPY and JGBs higher.
Meanwhile, PM Kan is also preparing a emergency supplementary budget response, given the government still has 1.3 trillion yen in discretionary funds for the current FY that can be allocated for quake relief, and Noda said “the fiscal situation can’t be a constraint to addressing this natural disaster”.
As of yesterday, the official toll was 977, with 739 still missing, and 1,683 injured.
The economic implications from the earthquake could exceed the 20 trillion yen damage from the Kobe earthquake in 1995, and what is troubling is a potential meltdown at the Fukushima nuclear power facility.
Companies like Sony Corp, Toyota, Nissan, Mitsubishi had also halted production.