BoJ pumps another 1.5 trillion yen into markets

BoJ pumps another 1.5 trillion yen into markets

Tokyo: The Bank of Japan pumped another 1.5 trillion yen ($14.2 billion) into money markets on Wednesday, amid an effort among the world’s central banks to calm worries about a global financial crisis.

The Bank of Japan during the past week has been injecting trillions of yen by the day to add liquidity into the system. The latest brings the bank’s infusion to a total of 14 trillion yen ($132.6 billion).

A widening credit crisis, which began last year in the US, is threatening the world’s economic health and stability. The collapse of Lehman Brothers last week is fueling additional worries about a possible financial crisis.

Washington has announced a bailout plan to buy $700 billion in bad mortgages and other toxic assets held by banks and other financial institutions. Some analysts say a bailout is needed to prevent a collapse of the global financial system.

Overnight, the European Central Bank and the Bank of England offered another $80 billion in cash to shore up the shaky global financial system and keep liquidity flowing between banks.

The moves come after a series of concerted actions last week among the world’s central banks, including the Bank of Japan, to supply cash to banks that have become leery of lending to one another.