Bank of Japan unveils new measures to boost economic recovery

The Japanese central bank today unveiled new measures, entailing short-term loans worth 118 billion US dollars to domestic financial entities, to boost sagging economic recovery. The latest moves from Bank of Japan come against the backdrop of appreciating yen that has dented the profitability of exporters. In an emergency meeting, the apex bank decided to provide additional funds worth 10 trillion yen, having a term of six months. The stimulus comes on top of three-month loans of 20 trillion yen that is already being extended by the bank. The new loan would be available at an interest rate of 0.1 per cent. The central bank’s decision is widely expected to be followed by the Japanese government announcing new stimulus measures to accelerate economic growth. This is the second time since December 2009 that Bank of Japan has come up with low-interest rate funds.

Japan, which is grappling with fragile revival, has been surpassed by China as the world’s second largest economy.

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