BOJ’s new facility to target environment, R&D- Nikkei

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TOKYO, May 1 (BestGrowthStock) – The Bank of Japan will set up a new
lending facility aimed at banks that make loans to environment
business, energy business and research and development, Japan’s
Nikkei business daily reported on Saturday.

The central bank announced on Friday it would consider new
ways to bolster growth, saying Japan needed to raise
productivity, even as it signalled deflation may end sooner than
previously thought.

The Nikkei reported without citing source that the central
bank plans to decide on the framework of the new facility as
early as in May.

Floated within the central bank is a plan to provide funds
for a period longer than three months at the bank’s policy rate,
currently at 0.10 percent, the paper also said.

Shirakawa said on Friday that the BOJ wants to support the
government’s attempt to boost growth. The government plans to
announce its growth strategy in June.

“The government’s economic strategy focuses on things like
green business and new areas for demand. In order for the BOJ to
support this, we will first need to gather views from
private-sector financial institutions to see what measures are
appropriate,” he said on Friday.

Shirakawa said he would work out the details after assessing
the needs of private banks.

The Nikkei also said more than one board members appear to
have forecast a fall in core consumer prices in the next fiscal
year from April.

The bank said on Friday the median forecast of its eight
board members was for the core consumer price index to rise 0.1
percent in 2011/12, compared to previous forecast in January for
a 0.2 percent fall.

Japanese Core consumer prices have been falling for more than
a year and the government has said ending deflation is one of its
top priorities.

Stock Market Investing
(Reporting by Hideyuki Sano)

BOJ’s new facility to target environment, R&D- Nikkei