By David Schutz, THE TAKEAWAY: BOJannounces no new monetary easing measures -> vote unanimousto leaverates unchanged at 0.10% -> BoJ expands credit facility forsmall loans -> USDJPY falls 30 points The Bank of Japan kept key policy elements unchanged, referencing no increase in interest rates or monetary easing measures. The decision to do so was unanimous, the central bank said in a statement today. In a bid to strengthen the foundational economic growth, however, the BoJ expanded the size of a venture capital credit facility designed to encourage financial institutions to lend to growth industries. Included in this step was the creation of a 500bln Yen loan arrangement for small lot investments and loans. The BoJ last month expanded its quantitative easing fund by 50bln Yen in a bid to encourage growth and support a weaker Yen. The recent policy steps have lifted the spirits of Japanese exporters, who had struggled for a period with an artificially strong currency which decreased international purchasing power within Japan. The Yen strengthenedsome 30 points against the US dollar on the news the BoJ has dismissed further easingmeasures for the timebeing.
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