Japan Central Bank launches loan

Bank of Japan announced plans to fund the provision of more than 3 trillion yen or $ 33 billion low-interest to spur economic growth.

Loan funds can be used by commercial banks to encourage more lending in the private business sector.

Companies engaged in various sectors such as energy, environment and tourism will become a target for the plan.

Japan's central bank will also confirm the near zero interest rate peg.

Interest from banks reached 0.1% since the end of 2008, following the deflation that hit Japan and the slow pace of economic recovery due to the recession.

The central bank did not give a signal the bank will increase interest rates in the short term, and plans to continue running the monetary policy "accommodative extraordinary."

Questionable policy

Meanwhile, the loan program should be able to enhance productivity and increase the rate of economic growth.

The plan will be approved banks to obtain loans of more than 150 billion yen, the loan period is more than four years at 0.1%.

The scheme had been due to start in late August.

But economists questioned the impact the plan will encourage economic growth.