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BOJ minutes: few said funding support effect waning

Published 10/18/2009, 08:11 PM
Updated 10/18/2009, 08:12 PM

TOKYO, Oct 19 (Reuters) - A few Bank of Japan board members said the effects of the central bank's corporate funding support was waning while one said these measures still had a role as a form of safety net, minutes of the board's Sept. 16-17 meeting showed on Monday.

Many board members said the central bank should decide what to do with these extraordinary funding support programmes as financial markets improve.

At the meeting, the BOJ kept interest rates at 0.1 percent and upgraded its economic assessment on the view that improving exports and output were heightening the chances that the economy would meet its forecast for a moderate pick-up early next year.

The central bank deferred a decision on withdrawing support for corporate finance at its subsequent meeting last week and upgraded its view on the economy again while leaving its policy rate unchanged.

The BOJ has come under pressure from some cabinet ministers who worry that a quick exit from emergency steps to support corporate funding would hurt the fragile economy, just now emerging from its deepest recession in 60 years. (Reporting by Tetsushi Kajimoto)

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