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,".

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.


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