Bank of Japan Governor Masaaki Shirakawa said today global financial markets remained under great strain and that was hurting the financing efforts of Japanese companies.
"Due to risk aversion among investors, credit spreads on commercial paper and corporate bonds are widening and ... the corporate financing situation is worsening," Shirakawa told a news conference.
The Bank of Japan kept its key policy rate unchanged at 0.30 per cent today, as it examines how last month's rate cut helped ease the pain from the global credit crisis.
Eyeing end-of-year pressures in financial markets, the central bank said it would buy commercial paper more flexibly under repurchase agreements to aid corporate financing and would consider changes in fund operations collateralised with corporate debt.