Bank of Japan Follows Fed, Cuts Rates to Near Zero

It drops key interest rate to 0.1%
By Jason Farago,  Newser Staff
Posted Dec 19, 2008 7:32 AM CST

(Newser) – The Bank of Japan cut interest rates from 0.3% to to 0.1%, within the historic zero- to quarter-percent range that the Fed chose earlier this week. Central bankers were responding to a deep recession as well as a soaring yen, which recently hit a 13-year high against the dollar. In its statement, the BoJ said it may cut rates again and will accelerate the buying of Japanese government bonds.