The Bank of Japan on Wednesday discussed further steps it could take to improve corporate financing toward the end of fiscal 2008 amid the global credit crunch, which is raising the cost of operating capital for Japanese firms.
In a two-day policy meeting that began Wednesday, the BOJ is widely expected to hold its key interest rate steady at 0.1 percent after lowering it from 0.3 percent last month. But the tough conditions are likely to pressure the BOJ to come up with additional credit-easing policies.
Among key points being examined is how the BOJ will carry out its plan to purchase commercial paper from banks and other financial institutions. The bank decided last month to temporarily conduct purchases of the short-term debt companies routinely issue to raise funds, but the exact details haven't been hammered out yet.