Bank of Japan outlines $33b loan scheme
Japan's central bank unveiled a $33 billion loan scheme yesterday to boost growth and battle deflation, as it faces mounting pressure from a new government focused on economic restoration.
The Bank of Japan (BoJ) will make low interest funds available to private banks to lend to companies, a move it hopes will in turn encourage firms to make longer-term business investments in a bid strengthen the economy.
Raising Japan's potential economic growth rate and productivity was its "most critical challenge" the bank said, as it announced it would offer as much as three trillion yen (33 billion dollars) in a temporary low-interest loan scheme.
The bank said it had been looking at ways "to rid Japan's economy of deflation and achieve sustainable growth with price stability".
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