Japan slashes interest rates to 0.1%
The Bank of Japan today cut interest rates to 0.1% in another attempt by central banks around the world to drag the global economy out of recession.
The bank's eight board members voted by a margin of 7-1 to lower the basic lending rate by 20 basis points to 0.1%, following a similar cut at the end of October.
The decision comes days after the US federal reserve decided to take interest rates to record low levels of between zero and 0.25%. Earlier this month the Bank of England slashed interest rates to 2%, their lowest level in 57 years, and is reportedly considering another cut when its board meets early next year.
Concern is mounting that the rise of the yen, which last week reached a 13-year high against the dollar, would continue to batter exports and corporate earnings.