TOKYO, Dec. 19 (Xinhua) -- The Bank of Japan (BOJ) cut its key interest rate to 0.1 percent from 0.3 percent Friday with an aim of boosting the faltered economy amid worsening global economic crisis.
The BOJ's eight-member Policy Board voted by 7-to-1 to lower the target rate for unsecured overnight call money for the second time this year. The panel lowered the key interest rate to 0.3 percent from 0.5 percent on Oct. 31 in its first rate reduction since March 2001.
The Japanese central bank has been under increasing pressure to cut the key interest rate, especially after the U.S. Federal Reserve decided Tuesday to, in effect, cut its main interest rate to zero percent.
The dollar fell to a 13-year low against the yen this week after the U.S. rate cut, as many investors dumped the dollar for yen and other currencies.
An appreciating yen hurts Japanese exports as it capped companies profits when converted into yen. Japan's economy relies heavily on export.
Japanese government has announced a slate of stimulus measures to boost economy, while the BOJ has also been urged by lawmakers to work out further support measures for corporate financing, such as outright purchase of commercial paper, or short-term debt issued by companies.
The BOJ Governor Masaaki Shirakawa will meet the press at 3:30 p.m local time to brief the outcome of the two-day policy meeting ended Friday.
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