TOKYO » Japan’s government and the central bank threw the economy a double lifeline yesterday, seeking to contain a strong yen and revive a faltering recovery.

To boost liquidity, the central bank unveiled a new six-month low-interest loan program to financial institutions. Combined with an existing three-month funds-supplying operation worth $236 billion, banks will now have access to a total of $355 billion.

The 8-1 decision by the central bank’s policy board was accompanied by an unanimous vote to keep its key interest rate at a superlow 0.1 percent.

"With this, the bank will encourage a decline in market interest rates and further enhance easy monetary conditions," Bank of Japan Gov. Masaaki Shirakawa told reporters.

The central bank’s move, which disappointed investors and analysts hoping for bolder action, was followed several hours later by Prime Minister Naoto Kan’s plans for a new economic stimulus package worth $10.9 billion. Those steps were also criticized as inadequate.

Japan’s export-driven economy faces mounting uncertainty due to the strong yen, which hit a 15-year-high last week, and slowing global growth. Sustained strength in the yen is toxic to vital exporters such as Toyota Motor Corp. and Sony Corp. because it erodes their international profits and makes their goods less competitive abroad.

The new stimulus package includes more help for job seekers, such as enhanced career counseling at universities and an internship program for new graduates. To bolster consumption, the government hopes to extend incentives including a popular "eco-point" program aimed at encouraging purchases of energy-efficient home appliances. Kan also wants to establish a committee of high-level public and private-sector officials to help the country adopt new growth strategies.

Kan will tap into reserve funds from this year’s budget. Specific details of the steps and their approval are expected Sept. 10.

But financial markets were underwhelmed by the central bank’s decision, and economists question the effectiveness of the government’s stimulus.

The yen weakened and the Nikkei 225 stock average rose more than 3 percent following news of the emergency meeting. Both reversed course after the central bank’s announcement. The Nikkei pared gains to finish up 1.8 percent at 9,149.26, and the yen strengthened to 85.12 to the dollar.