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Wednesday, 17 March 2010 - Bank of Japan frees up cash, keeps rate near zero
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    Read more with google mobile : Bank of Japan frees up cash, keeps rate near zero

    Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World Bank of Japan frees up cash, keeps rate near zero AFP - 2 hours 52 minutes ago Send IM Story Print Bank of Japan frees up cash, keeps rate near zero Slideshow: Full Photo Coverage: Business & Economy TOKYO (AFP) - – Japan's central bank doubled the amount of cash it would make available to banks Wednesday while keeping interest rates at a record low as it tries to kickstart a stuttering economic recovery. Under government pressure to help fight deflation, the Bank of Japan said it would extend emergency steps taken in December by boosting its short-term loan facility to 20 trillion yen (220 billion dollars). The facility offers three-month loans at 0.1 percent against collateral such as government bonds and corporate debt. However, the bank surprised markets by not extending the loan duration to at least six months. The decision, after a two-day policy meeting, came as the economy claws out of its worst post-war recession in a recovery that has been hobbled by falling consumer prices and weak consumption. The BoJ held its benchmark interest rate unchanged at 0.1 percent, a level it has kept since December 2008, the height of the global financial market meltdown. The bank said: "Japan's economy is picking up mainly due to various policy measures taken at home and abroad, although there is not yet sufficient momentum to support a self-sustaining recovery in domestic private demand." "The bank recognises that it is a critical challenge for Japan's economy to overcome deflation and return to a sustainable growth path with price stability," it added, maintaining its earlier view. "The bank will continue to aim to maintain the extremely accommodative environment." The decision comes after the government raised pressure on the bank to do more to beat deflation, which hurts corporate profits and depresses economic activity as consumers delay spending, hoping for further price drops. In a fresh nudge to the bank, Finance Minister Naoto Kan told a parliamentary session on Tuesday that he hoped it would "make efforts to combat deflation", in comments cited by Dow Jones Newswires. Recommend Send IM Story Print Related Articles RPT-Emerging issuers on track to raise $60 bln in Q1 2010 Reuters - 48 minutes ago JGB futures drop, split BOJ vote dents easing outlook Reuters - 49 minutes ago HSBC says committed to joining Bocom rights issue Reuters - 1 hour 3 minutes ago US-BUSINESS Summary Reuters - 1 hour 6 minutes ago India call money higher on tax outflows Reuters - 1 hour 9 minutes ago News Search Top Stories Fed maintains low rates, upgrades view on US economy British ads banned over climate change claims Post-heart attack fatalities higher in women than men: study US 'winning battles but still fighting war on cancer' Technology helps Liberia turn the page on 'blood timber' More Top Stories » Related Full Coverage China Economychina economy All Full Coverage » ADVERTISEMENT Most Popular Most Viewed Most Recommended Kate Winslet and director husband Mendes split Shell says will slash another 1,000 jobs by 2011 Post-heart attack fatalities higher in women than men: study Efforts to save tiger have 'failed miserably': CITES Calvin Klein owner buys Tommy Hilfiger brand More Most Viewed » Chile quake moved Earth's axis, shortened days: scientist Experts confirm asteroid wiped out the dinosaurs 'Britain's Fritzl' raped daughters for over 25yrs Florida killer whale to stay in park after deadly attack Researchers back cancer-fighting properties of papaya More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos World Cup 2010 Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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