(FT) -- The Bank of Japan moved to halt the rise of the yen and support the country's faltering economy by expanding a special bank lending programme by half to Y30,000bn.
The central bank's decision on Monday, a day before Naoto Kan, prime minister, is scheduled to unveil economic stimulus measures, highlights the growing sense of concern about the weakness of the Japanese economy and the negative impact of the yen's sharp appreciation against the dollar.
Concern is also rising about the outlook for major developed economies, prompting Ben Bernanke, US Federal Reserve chairman, to send a message on Friday that if necessary, the Fed would support the sputtering economy with further measures.
Masaaki Shirakawa, the Japanese central bank governor, returned early from Jackson Hole for the unscheduled bank board meeting and is expected to meet later on Monday with Mr Kan, who last week urged the governor to act swiftly to tackle the yen's rise.
The new Y10,000bn added to the lending programme will provide funds for six months. The existing Y20,000bn programme has a three-month duration.
Japan's economy in the second quarter grew an annualised 0.4 per cent, according to preliminary government data, and was overtaken by China as the world's second largest. CNN
