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| BOJ pumps $183bn to calm markets as stocks tumble | BOJ pumps $183bn to calm markets as stocks tumble |
| (about 2 hours later) | |
| The Bank of Japan is to inject 15 trillion yen ($183bn; £114bn) into the banking system to stabilise financial markets. | The Bank of Japan is to inject 15 trillion yen ($183bn; £114bn) into the banking system to stabilise financial markets. |
| Tokyo's Nikkei 225 index fell 6.2% on the first day of trading after Friday's quake as the markets assessed the full impact of the devastation. | |
| The amount is the largest ever in a single operation by the Japanese central bank. | The amount is the largest ever in a single operation by the Japanese central bank. |
| The Bank also announced steps to ease monetary policy. | |
| "We will take every possible measure, including providing liquidity, to ensure the stability of financial markets," a bank spokesman said. | "We will take every possible measure, including providing liquidity, to ensure the stability of financial markets," a bank spokesman said. |
| Japan is facing upheaval on a huge scale as it grapples with the massive clean-up operation, a potential nuclear meltdown, power shortages and huge disruption to the economy. | Japan is facing upheaval on a huge scale as it grapples with the massive clean-up operation, a potential nuclear meltdown, power shortages and huge disruption to the economy. |
| As the country comes to grips with the extent and scale of the devastation, consumers are expected to withdraw their savings to pay for immediate expenses. | As the country comes to grips with the extent and scale of the devastation, consumers are expected to withdraw their savings to pay for immediate expenses. |
| Analysts say that the central bank is making sure there is no panic in the market by ensuring enough liquidity in the banking system. | Analysts say that the central bank is making sure there is no panic in the market by ensuring enough liquidity in the banking system. |
| The Bank will also make available another 6.8 trillion yen ($73bn; £45.4bn) in the next two days. | |
| Further easing | Further easing |
| During the Bank's monetary policy meeting on Monday, it also announced the expansion of an asset buying fund by 5 trillion yen ($60.8bn; £37.8bn) to support businesses. | |
| In a statement, the Bank said this was to "preempt a deterioration in business sentiment". | |
| The nine-member policy board also voted unanimously to keep its key interest rate at virtually zero. | The nine-member policy board also voted unanimously to keep its key interest rate at virtually zero. |
| Japan's central bank has kept interest rates at record lows in recent years in a bid to boost growth as the country struggles to emerge from the effects of the global financial crisis. | Japan's central bank has kept interest rates at record lows in recent years in a bid to boost growth as the country struggles to emerge from the effects of the global financial crisis. |
| Now with the triple impact of the earthquake, tsunami and nuclear accident, many believe that Japan's economy could be pushed back into recession. | Now with the triple impact of the earthquake, tsunami and nuclear accident, many believe that Japan's economy could be pushed back into recession. |
| No fiscal crisis | No fiscal crisis |
| As the central bank injects fresh funds into the economy and the estimated cost of rebuilding goes up, there are concerns about Japan's growing deficit. | As the central bank injects fresh funds into the economy and the estimated cost of rebuilding goes up, there are concerns about Japan's growing deficit. |
| Japan has the largest debt in the industrialised world and the devastation caused by the earthquake and tsunami is likely to take that figure higher. | Japan has the largest debt in the industrialised world and the devastation caused by the earthquake and tsunami is likely to take that figure higher. |
| The nation's credit rating was recently downgraded on concerns that not enough is being done to address it. | The nation's credit rating was recently downgraded on concerns that not enough is being done to address it. |
| However, Japan's debt is funded largely by local savings, so most analysts do not believe there is any immediate threat of a fiscal crisis in the country. | However, Japan's debt is funded largely by local savings, so most analysts do not believe there is any immediate threat of a fiscal crisis in the country. |
| "We still see that the market will readily fund the government right now," said Tom Byrne of ratings agency, Moody's. | "We still see that the market will readily fund the government right now," said Tom Byrne of ratings agency, Moody's. |
| "We still don't see an immediate fiscal crisis," Mr Byrne added. | "We still don't see an immediate fiscal crisis," Mr Byrne added. |