Japan's central bank has increased a stimulus measure aimed at encouraging financial institutions to lend more. It has doubled to 20 trillion yen the amount of cheap short-term loans it is offering banks. The scheme, which lends money at a rate of 0.1 per cent, was introduced in December to try to tackle the deflation which is threatening Japan's economic recovery. The Bank also voted to hold interest rates at 0.1 per cent – the level at which they have been since December 2008. The Cabinet Office said the economy expanded by 0.9 per cent between October and December of last year, down from its initial estimate of 1.1 per cent. That downward revision increased pressure on the Bank of Japan to ease monetary policy.