TOKYO (MNI) - The Bank of Japan's decision on Monday to inject cash into the banking system at a super-low overnight rate for six-month funding follows an unusually specific call from Prime Minister Naoto Kan to conduct "flexible" monetary policy.

The BOJ's decision made at a hurriedly called extraordinary policy board meeting also comes on the eve of the government's plan to announce on Tuesday the framework for its new fiscal stimulus package focused on creating jobs and easing the pain of a rapid rise in the yen inflicted on export-oriented small businesses.

TOKYO (MNI) - Bank of Japan Governor Masaaki Shirakawa said on Monday that the BOJ board's decision to ease credit further was a preemptive strike against a U.S. downturn and other emerging downside risks that could hurting Japan's modest economic recovery.

The BOJ board made the move to make the already very accommodative financial conditions even more stimulative, also keeping in mind that the government is drafting additional fiscal stimulus to fight the negative impact of the yen's rapid rise, Shirakawa told reporters.

Both the U.S. Federal Res

BOJ: Shirakawa To Meet Press at 1430 JST (0530 GMT) Today

TOKYO (MNI) - The Bank of Japan said early on Monday that it will hold an extraordinary policy-setting meeting at 0900 JST (0000 GMT) today amid concern that the strong yen and weak share prices will hurt a self-sustained economic recovery.

TOKYO (MNI) - Bank of Japan Governor Masaaki Shirakawa returned to Tokyo earlier than scheduled on Sunday evening, raising the possibility that the BOJ will hold an extraordinary board meeting on Monday to discuss ways to prevent the yen's rise from hurting the modest economic recovery.

The governor was originally scheduled to return on Monday from the Jackson Hole economic policy symposium hosted by the Federal Reserve Bank of Kansas City.

TOKYO (MNI) - Japanese Prime Minister Naoto Kan on Friday vowed to take a "firm" action to counter the drag of a rapid rise in the yen when necessary, without elaborating, newspaper and television reports said.

Kan also told reporters that he plans to meet Bank of Japan Governor Masaaki Shirakawa sometime after the central bank chief returns to Tokyo next Monday from the Jackson Hole economic policy symposium hosted by the Federal Reserve Bank of Kansas City.

"I expect (the BOJ to conduct) flexible monetary policy," Kan was quoted as saying by local media.

TOKYO (MNI) - The government will urge the Bank of Japan to do the utmost in conducting monetary policy in order to end deflation and defend the export-led recovery from the threat of a rapid rise in the yen against the dollar, the Asahi Shimbun newspaper reported on Thursday.

TOKYO (MNI) - Japan's Prime Minister Naoto Kan will likely have a meeting with Bank of Japan Governor Masaaki Shirakawa next week to discuss current economic and financial conditions, the Nikkei reported in its evening editions.

The meeting of between Kan and Shirakawa would be their first since June 21.

The two leaders have agreed to hold a meeting once every three months.

The expected meeting will be held on the heels of an economic ministers' meeting on Friday.

TOKYO (MNI) - In the face of the yen's rise and slowing overseas demand, Japanese Prime Minister Naoto Kan plans to draft another set of stimulus measures in a bid to underpin the economy, the Nikkei and other media reported on Tuesday.

On Monday, Kan told Economy and Fiscal Policy Minister Satoshi Arai, Finance Minister Yoshihiko Noda and Minister of Economy, Trade and Industry Masayuki Naoshima to examine the current economic conditions and report back with specific proposals.