Japan economy under 'downward pressure', BoJ warns

The Japanese economy is "under strong downward pressure" in the wake of the damage caused by the earthquake and tsunami, the Bank of Japan (BOJ) says.

Lost production and disrupted supply chains are the main cause of the downward pressure, the central bank told the BBC. The BoJ has kept its monetary policy unchanged. Interest rates remain in the range of zero to 0.1%. It says it will offer ¥1trn ($11.7bn; £7bn) in new one-year loans, which will be extended to financial institutions in quake-hit areas at an interest rate of just 0.1%. Analysts say given the current situation, the central bank is unlikely to alter its monetary policy for the time being. "The BOJ sees no need to ease policy further and will stand pat for the time...