Bank of Japan Adds New Loan Program

The Bank of Japan left on March 13th its key monetary policy unchanged to check the effects of last month's easing steps, but decided to expand a loan program to ¥5.5trn for potentially high-growth sectors in a bid to stimulate the economy.

Extracts from the Statement on Monetary Policy

1. Japan's economy currently confronts the long-term structural challenge of declining trend growth rates amid rapid population aging. Tackling this challenge is crucial for establishing a new basis for economic growth. The goal of overcoming deflation will be achieved through such efforts to strengthen growth potential and via support from the financial side. With this in mind, it is important for business firms, financial institutions, the government, and the central bank each to continue exerting themselves in their respective roles.

2. Based on the above recognition, the Policy Board of the Bank decided to enhance the fund-provisioning measure to support strengthening the foundations for economic growth (hereafter referred to as "the Growth-Supporting Funding Facility") as followings. As a result of today's enhancement both in terms of the yen and a foreign currency, the total amount of loans available through the Growth-Supporting Funding Facility will increase by 2 trillion yen, from 3.5 trillion yen to 5.5 trillion yen.

Bank of Japan Adds New Loan Program, Bank of Japan
3/13/2012 6:53:42 PM