BOJ likely to hold meeting Mon. to decide on new credit easing steps+

TOKYO, Aug. 29 Kyodo -
The Bank of Japan will likely hold an extraordinary policy meeting Monday to
decide on additional monetary easing measures to cope with the yen's recent
sharp rise and sagging stock prices, sources familiar with the matter said
Sunday.
The additional measures are expected to focus on expanding one of its lending
programs, which is currently designed to provide 20 trillion yen as three-month
loans to financial institutions at its policy interest rate of 0.1 percent, the
sources said.
The central bank is considering increasing the lending amount to 30 trillion
yen and extending the lending period to six months, they said.
There is an idea of expanding the new 3 trillion yen lending facility to be
introduced by the BOJ in September to strengthen the foundation for economic
growth, they also said.
The BOJ has judged it necessary to take additional measures promptly in
concerted with the government to stem the yen's appreciation and falls in stock
prices, the sources said.
There was a plan to decide on additional monetary easing measures at its Sept.
6-7 regular policy meeting but the BOJ has decided to hold an extraordinary
meeting before the government outlines a new package of economic stimulus
measures Tuesday, they said.
Prime Minister Naoto Kan will meet with BOJ Governor Masaaki Shirakawa this
week on measures to stem the yen's rise. Shirakawa has already returned home
from Friday's symposium of world top central bankers in the United States, the
sources said.
==Kyodo
2010-08-29 23:43:48