TOKYO, Aug 30 (Reuters) - The Bank of Japan expanded its fund supply tool at an emergency meeting on Monday, saving more aggressive steps for when there is clearer evidence of a slowdown in a fragile economy hit by a strong yen.
The central bank increased the volume of money available to banks under its fixed-rate fund supply operation to 30 trillion yen ($351 billion) from 20 trillion yen.
It also put in place a six-month fund operation in addition to the three-month loan programme already in place.
Of the 30 trillion yen, 10 trillion yen will be the six-month fund operation, BOJ said.
The decision was by an 8-1 vote, with Miyako Suda dissenting.
The central bank, as widely expected, maintained its overnight core rate target at 0.1 percent by a unanimous vote.
Shirakawa will hold a news conference to explain the decision at 2:30 p.m. (0530 GMT)
($1=85.37 Yen)
(Reporting by Leika Kihara, Tetsushi Kajimoto; Editing by Edmund Klamann)
((leika.kihara@thomsonreuters.com; +81-3-6441-1828; Reuters Messaging: leika.kihara.reuters.com@reuters.net)) (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The central bank increased the volume of money available to banks under its fixed-rate fund supply operation to 30 trillion yen ($351 billion) from 20 trillion yen.
It also put in place a six-month fund operation in addition to the three-month loan programme already in place.
Of the 30 trillion yen, 10 trillion yen will be the six-month fund operation, BOJ said.
The decision was by an 8-1 vote, with Miyako Suda dissenting.
The central bank, as widely expected, maintained its overnight core rate target at 0.1 percent by a unanimous vote.
Shirakawa will hold a news conference to explain the decision at 2:30 p.m. (0530 GMT)
($1=85.37 Yen)
(Reporting by Leika Kihara, Tetsushi Kajimoto; Editing by Edmund Klamann)
((leika.kihara@thomsonreuters.com; +81-3-6441-1828; Reuters Messaging: leika.kihara.reuters.com@reuters.net)) (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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