Bank of Japan to maintain ultra loose monetary policy

The Bank of Japan (BOJ) decided Tuesday to maintain its ultraloose monetary policy and extend its special loan support fund program for one year to encourage banks to boost lending to businesses with growth potential, with the aim of bolstering an economic recovery, (Kyodo) news agency reported.The BOJ left unchanged its assessment of the domestic economy for the fifth straight month, saying in a statement that it “has continued to recover moderately,” after weaker-than-expected gross domestic data indicated a slowdown in the country’s economic growth amid sluggish exports.As for the loan support fund introduced in 2010, the central bank also decided at its Policy Board meeting to double the maximum amount of fund provision to 7 trillion yen from 3.5 trillion yen.