BoJ holds fire but signals more easing ahead, sets quake loan scheme

The Bank of Japan on Thursday offered 1 trillion yen ($12 billion) in ultra-cheap loans to banks in areas devastated by last month's earthquake but held off on more aggressive policy easing, saying it needed more time to assess the extent of the economic damage.
As expected, the central bank cut its assessment of the economy in the wake of the March 11 disaster, saying it would remain under "strong, downward pressure" for some time, but added it was ready to ease policy further if needed. The government has estimated the direct damage from the quake and ensuing tsunami at some $300 billion, not including the cost of lost production from factories which were forced to shut due to widespread power outages.
Though many plants have been brought back online, rolling power blackouts and shortages of essential parts are expected to persist into summer, and workers are still battling to contain radiation at a damaged nuclear power complex northeast of Tokyo. The BoJ said it would offer 1 trillion yen ($11.7 billion) in one-year loans at 0.1 percent interest to financial institutions beginning in May to help spur reconstruction.