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The Honolulu Advertiser
Posted on: Wednesday, March 17, 2010

Bank of Japan expands lending to fight deflation


Associated Press

TOKYO Japan's central bank is escalating the fight against deflation by offering more cheap loans to banks.

The Bank of Japan voted after a two-day policy board meeting today to double the amount available under its short-term lending program to 20 trillion yen ($442 billion) from 10 trillion yen.

Introduced in December, the three-month loans at a fixed rate of 0.1 percent are intended to boost liquidity and lower longer-term interest rates.

It also voted unanimously to keep its key interest rate at a super low 0.1 percent.