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Changes in interest rate applied to the Temporary Lending Facility to Support Firms' Financing Activities

February 12, 1999
Bank of Japan

The Monetary Policy Meeting of the Policy Board of the Bank of Japan has today decided to lower the interest rate applied to the temporary lending facility to support firms' financing activities from 0.5% to 0.25% per annum. This decision was made in line with change to the guideline for money market operations also decided at today's meeting.

The new interest rate shall apply starting from February 22, 1999, when the next loans shall be provided. If there is prepayment of previous loans, the new interest rate shall apply from the next loan provision. With respect to loans provided on December 21, 1998, the new interest rate shall apply, even in the absence of prepayment, on March 23, 1999, upon rollover.