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Japan's Central Bank Cuts Key Rate to 0.35 Percent
The Bank of Japan (BOJ) announced Friday it will cut its official discount rate by 0.150 percentage point to 0.350 percent next Tuesday in a bid to help Japan's stalled economy.
The central bank made the announcement after a one-day meeting of its Policy Board held amid pressure from the government and the ruling coalition to ease monetary policy.
The central bank said it will leave its target rate for overnight call money unchanged at 0.25 percent, and will resume outright purchase of treasury bills for the first time since April last year.
It is the first cut in the key rate, which the BOJ charges financial institutions for its loans, since September 1995.
The central bank's decision came amid the recent deceleration in the U.S. economy and the weakness of Japanese stocks ahead of the settlements for fiscal 2000 in March.
The BOJ's decision was welcomed by the government.
The decision will "help revive (Japan's stalled) economy," Chief Cabinet Secretary Yasuo Fukuda told reporters.
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