Bank of Japan to end some emergency measuresJapan's central bank said Friday that it would end some of its emergency measures to fight the financial crisis at the end of the year as Asia's biggest economy emerges from a deep recession. The Bank of Japan has been tackling the credit crunch Credit Crunch An economic condition whereby investment capital is difficult to obtain. Banks and investors become weary of lending funds to corporations thereby driving up the price of debt products for borrowers. with super-low lending rates and other steps to support struggling companies, such as purchases of corporate debt, which will finish at the end of December. "Japan's financial environment, with some lingering lin·ger v. lin·gered, lin·ger·ing, lin·gers v.intr. 1. To be slow in leaving, especially out of reluctance; tarry. See Synonyms at stay1. 2. severity, has been increasingly showing signs of improvement," the BoJ said in a statement. The Bank said it would leave its key interest rate unchanged at 0.1 percent, as widely expected. It pledged to continue a highly stimulative monetary policy to support the world's number two economy as it struggles out of a severe downturn. "The Bank will maintain the extremely accommodative financial environment for some time by holding interest rates at their current low levels and providing ample funds sufficient to meet demand in financial markets," it said. Analysts say a rate rise looks unlikely anytime soon in Japan, where lending costs have been kept very low for years to support a sluggish economy Sluggish Economy A state in the economy in which the growth is slow, flat or declining. The term can refer to the economy as a whole or a component of the economy, such as weak housing starts. . Japan's economy returned to positive growth in April-June, limping out of a year-long recession, but there are concerns that the recovery may have lost steam as the effects of the government's economic stimulus measures fade. Japan's banks escaped the worst of the subprime loan Subprime Loan A loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans. Notes: Subprime loans tend to have a rate that is 0.1% to 0.6% higher than the prime rate. crisis but its manufacturers were badly hurt because many consumers in world markets stopped buying their products, such as cars and televisions. The Bank said it would continue to offer unlimited low-cost loans to the banks as part of its efforts to keep credit flowing to firms. The latest batch of data from Japan suggested that the economic slump Slump A temporary fall in performance, often describing consistently falling security prices for several weeks or months. eased in September, with the jobless job·less adj. 1. Having no job. 2. Of or relating to those who have no jobs. n. (used with a pl. verb) Unemployed people considered as a group. Used with the. rate dropping to a four-month low of 5.3 percent, deflation deflation: see inflation. deflation Contraction in the volume of available money or credit that results in a general decline in prices. A less extreme condition is known as disinflation. easing and household spending rising. 
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