The Bank of Japan says that the country's economy is under strong downward pressure due to the devastation caused by the earthquake and tsunami. The bank said that the downward pressure largely stems from lost production and disrupted supply chains. The central bank kept its monetary policy unchanged leaving the interest rates in the range of zero to 0.1 per cent. The bank said it will offer 11.7 billion dollar in new one-year loans. The loans will be extended to financial institutions in the quake-hit areas.