The Bank of Japan (BOJ) has announced measures to boost lending aimed at combating the rising value of the yen. Following an emergency meeting, the central bank said it would increasing lending to commercial banks by 10 trillion yen ($117bn; £75bn). The measure is designed to stem the value of the currency, and boost lending to businesses. Meanwhile the Japanese government has announced its own plans for a 920 billion yen stimulus package. Prime minister Naoto Kan said ministers had agreed a plan to fight the rise in the yen, as well as to try and counter weakness in some economies - especially the US and in Europe - that buy Japanese goods.
The Bank of Japan (BOJ) has announced measures to boost lending aimed at combating the rising value of the yen.
Following an emergency meeting, the central bank said it would increasing lending to commercial banks by 10 trillion yen ($117bn; £75bn).
The measure is designed to stem the value of the currency, and boost lending to businesses.
Meanwhile the Japanese government has announced its own plans for a 920 billion yen stimulus package.
Prime minister Naoto Kan said ministers had agreed a plan to fight the rise in the yen, as well as to try and counter weakness in some economies - especially the US and in Europe - that buy Japanese goods.
TOKYO -- Japan promised a host of measures on Monday in a bid to kick-start its faltering economy and temper a punishingly strong yen. Prime Minister Naoto Kan proposed new stimulus steps, while the Bank of Japan, under pressure from the government, eased its already easy monetary policy. But analysts called the measures too timid in the face of the problems facing Japan's export-oriented economy. A yen that has paradoxically surged to 15-year highs despite weaknesses in the country's economy, coupled with the damaging phenomenon of falling prices known as deflation, continues to hinder hopes of a strong recovery, analysts said. "There seems to be a sense of fatalism. The B.O.J. continues to play the same old game of making incremental, but ultimately meaningless, policy changes in response to political pressure," said Richard Jerram, economist for Japan at the global investment bank, Macquarie.
TOKYO -- Japan promised a host of measures on Monday in a bid to kick-start its faltering economy and temper a punishingly strong yen.
Prime Minister Naoto Kan proposed new stimulus steps, while the Bank of Japan, under pressure from the government, eased its already easy monetary policy.
But analysts called the measures too timid in the face of the problems facing Japan's export-oriented economy. A yen that has paradoxically surged to 15-year highs despite weaknesses in the country's economy, coupled with the damaging phenomenon of falling prices known as deflation, continues to hinder hopes of a strong recovery, analysts said.
"There seems to be a sense of fatalism. The B.O.J. continues to play the same old game of making incremental, but ultimately meaningless, policy changes in response to political pressure," said Richard Jerram, economist for Japan at the global investment bank, Macquarie.
