Bank of Japan to provide funds to commercial banks

Bank of Japan will encourage lending to companies and it will accept municipal and central government bonds from the companies to ease credit .These bonds can be directly sold into the market and the overnight lending rate has been fixed at 0.1% by the policy board of Japan.

A foreign exchange analyst at Tokyo said these measures might bring about a change but it will not have a mass effect .The measures may free money with the regional banks that provide funds to medium and small sized companies.