The Bank of Japan also maintained its monetary policy interest rate unchanged in May this year. Japan reported annual and monthly headline inflation of 0.3% in April, meanwhile core inflation rose 0.6%, as Japan finally begins to see some positive inflation figures.
Tuesday, June 14, 2011
Bank of Japan Holds Rate at 0.10%, Extends Loan Program
The Bank of Japan maintained its uncollateralized overnight call rate at a range of 0 to 0.1% by a unanimous vote. The Bank of Japan also extended its loan program, offering a new 500 billion yen lending facility to boost lending to businesses identified as being in growth industries. The Bank said: "With a view to further encourage financial institutions' efforts, the bank deems it appropriate to focus on supporting their provision of equity-like funds and loans without conventional collateral or guarantees,".