Japan loosens monetary policy

JAPAN - The Bank of Japan (BoJ) has decided to make borrowing money cheaper as the weight of huge bad debts and sliding prices continues to cripple the country's domestic economy.

After a majority vote, the BoJ is trying to put more money into circulation to allow hard-pressed banks to lend more.

Other countries might use a cut in interest rates to encourage lending. But Japan's short-term interest rates are already at zero, after an aggressive loosening of policy in March.

Instead, the BoJ is