By Lily Nonomiya and Mayumi Otsuma
The Bank of Japan began pouring cash into the banking system after the nation’s most powerful earthquake on record, while later today it may keep its asset- purchase plans unchanged as officials gauge the longer-term effect on the world’s third-largest economy.
Governor Masaaki Shirakawa told reporters late yesterday he’s ready to unleash “massive” liquidity, and the BOJ said today it will pump 7 trillion yen ($86 billion) to maintain financial stability. Economists said officials will likely decide to keep longer-term credit programs at a total of 35 trillion yen. The bank’s main interest rate has already been cut to near zero as policy makers last year sought to end the nation’s deflation.
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