	bank of japan determined to keep easy money policy the bank of japan bought billion yen in certificates of deposit cds via repurchase agreements today to show its determination to maintain an easy money policy central bank officials said today s cd buying operation was designed to seek an announcement effect in which we would reassure the market of the fact that we have not changed our policy stance a senior central bank official told reuters the bank also bought billion yen in two month commercial bills to smooth out tight credit conditions in the interbank market today the officials said the central bank was concerned about growing market expectations of higher  rates which were in part responsible for the recent plunge in stock and yen bond prices the officials said but money traders said the market generally shrugged off the bank s cd operation because it was small and at a rate far below prevailing market rates the rate on the key three month cds in the primary market was pct while the bank s bid was pct they said the bank s bill buying operation also had little impact because it was regarded as a routine operation they said the money traders said they regarded the central bank s cd buying operation as simply a gesture to live up to japan s pledge to guide  rates lower and stimulate the economy we did not expect the central bank to ease its credit grip any further a bank manager said adding that the prevailing market expectation of higher rates will remain if this is the case the three month cd rate will stay above four pct for the time being he said reuter 
