Under growing pressure to act, the Bank of Japan announced Monday it will ease its monetary stance further by expanding a ¥20 trillion lending program to ¥30 trillion, aiming to lower short-term interest rates and curb the yen's rise against the dollar.
The decision came ahead of the government's release of its economic stimulus package later in the day. Prime Minister Naoto Kan has urged the central bank to take further steps to shore up the economy, which could be hurt by the recent surges in the yen and declines in the stock market.
BOJ Gov. Masaaki Shirakawa met Kan to explain the bank's decision and its outlook for the economy. Kan welcomed the step.