BoJ cuts rate to near zero

Source : TOI:mumbai:5th oct 2010

TOKYO: Japan's central bank has reduced key interest rate to virtually zero in a surprise move on Tuesday and is looking to set up a $60 billion fund to buy government bonds and other assets as it tries to inject life into a faltering economy.

The Bank of Japan's ninemember policy board voted unanimously to set its overnight call rate target to a range of zero to 0.1%, returning to zero rates for the first time in more than four years.

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