Bank of Japan's new facility to target environment, R&D: Nikkei

The Bank of Japan will set up a new lending facility aimed at banks that make loans to environment business, energy business and research and development, Japan's Nikkei business daily reported on Saturday.The central bank announced on Friday it would consider new ways to bolster growth, saying Japan needed to raise productivity, even as it signalled deflation may end sooner than previously thought.The Nikkei reported without citing source that the central bank plans to decide on the framework of the new facility as early as in May.Floated within the central bank is a plan to provide funds for a period longer than three months at the bank's policy rate, currently at 0.10%, the paper also said.Shirakawa said on Friday that the BOJ wants to support the government's attempt to boost growth. The government plans to announce its growth strategy in June."The government's economic strategy focuses on things like green business and new areas for demand. In order for the BOJ to support this, we will first need to gather views from private-sector financial institutions to see what measures are appropriate," he said on Friday.Shirakawa said he would work out the details after assessing the needs of private banks. The Nikkei also said more than one board members appear to have forecast a fall in core consumer prices in the next fiscal year from April.The bank said on Friday the median forecast of its eight board members was for the core consumer price index to rise 0.1% in 2011-12, compared to previous forecast in January for a 0.2% fall.Japanese Core consumer prices have been falling for more than a year and the government has said ending deflation is one of its top priorities.