The Bank of Japan on Wednesday injected ample liquidity into the banking system, leaving the cash reserves in accounts held at the BOJ by financial institutions at around 9.5 trillion yen, up 1.4 trillion yen from Tuesday.
The move follows a decision by the central bank Tuesday to ease credit further to help prevent a global recession and to keep the cash balance in financial institutions' BOJ current accounts at more than 6 trillion yen for the time being.
The BOJ decided at a policy-setting meeting Tuesday to further ease its grip on credit to help quell fears of a global recession in the wake of last week's terrorist attacks in the United States.
In announcing the new policy, BOJ Gov. Masaru Hayami said the bank will continue to provide funds to keep the cash balance at 8 trillion yen or more as long as there is a strong need for liquidity.