UPDATE 1-BoJ likely to double lending facility – Nikkei

March 12 (BestGrowthStock) – The Bank of Japan may focus on
doubling the lending facility introduced in December, when it
begins discussions on additional monetary easing at a two-day
policy board meeting starting Tuesday, the Nikkei reported.

The central bank had lent close to its target of 10
trillion yen through the facility by the end of February.

The bank appears to see the need for extending the facility
as it worries that prolonged deflation will dampen corporate
and consumer sentiment. [ID:nSGE629088]

“The policy board is expected to consider raising the level
to 20 trillion yen in an effort to improve borrowing conditions
for businesses and households,” the Nikkei said.

However, disagreements between the board members may lead
the bank to delay a decision on extending the facility until
next month or later, the business daily said.

The funding facility provides three-month loans to
financial institutions at a minimal 0.1 percent interest rate.

Stock Market Money

(Reporting by Mansi Dutta in Bangalore; Editing by
Unnikrishnan Nair)

UPDATE 1-BoJ likely to double lending facility – Nikkei