Thursday, April 7, 2011

Bank of Japan Holds Rate at 0.10%, Announces Loan Program

The Bank of Japan held its monetary policy rate at 0.10% and announced a 1 trillion yen loan package targeted towards financial institutions affected by the earthquake. The loan program is the second action that the bank has taken to help boost the rebuilding effort following the devastating earthquake and nuclear disaster. The Bank of Japan previously announced a 5 trillion yen expansion of its asset purchase program. The earthquake will continue to have a short-medium term impact on the Japanese economy, indeed the bank noted "Japan's economy is under strong downward pressure, mainly on production, due to the earthquake,".


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