Japan and Australia Bank Revive Economies

took further steps to encourage lending and Australia cut its reference interest rate to the lowest level in nearly half a century Thursday, underlining concerns about the global economy despite signs of evacuation in China and other parties. Japan in particular is in a recession that economists say could be the worst since World War II. Both the government and central bank have made repeated efforts to bolster the economy decline deepens.
Prime Minister Taro Aso of Japan is expected to plan for new stimulus measures this week, which could be worth more than 2 percent of Japanese gross domestic product, or 100 billion dollars.
Tuesday, Bank of Japan left its reference rate unchanged at 0.1 percent, but said he would accept loans even municipal governments as collateral to creditors. The move could help prop up regional banks, which many smaller companies, depend on loans. (more…)