Bank of Japan cuts key interest rate to 0.1 per cent

Tokyo: The Bank of Japan (BOJ) cut its key policy rate to 0.1 per cent on Friday and took other steps to ease corporate credit strains.

The decision, which follows Tuesday's dramatic rate cut by the Federal Reserve, was made by a vote of 7-1.

Board member Tadao Noda voted against the rate decision, which takes effect immediately.

BOJ Governor Masaaki Shirakawa will hold a news conference later in the day.

Japan is already in recession as companies such as carmakers Toyota and Honda slash output as customers close their wallets worldwide.