Japan drains 2 trillion to stabilise rates

The Bank of Japan absorbed 2 trillion ($16.8 trillion) from the markets on Wednesday 15 August after the overnight call rate dropped below the central bank's target rate.

The central bank sold off 2 trillion-worth of bills which will be repurchased the next day as the overnight call rate, used to determine the rate charged for inter-bank loans, fell to 0.4%, slightly below the government's 0.5% target.

A spokesman from the Bank of Japan said: "The absorption of 2 trillion is not something th

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