Japan Cuts Key Interest Rate to Near Zero

Japan’s central bank has cut its key interest rate to a range of zero to 0.1 percent, effectively introducing a zero interest rate policy.

The unanimous vote came Tuesday after a two-day meeting of the Bank of Japan’s nine-member policy board.

The central bank had not changed the overnight call rate target since December 2008, when it set the rate at 0.1 percent.

The decision underscores growing worries about the Japanese economy, which is being battered by a strong yen and persistent deflation. Recent economic indicators point toward weakening growth.

TOKYO (AP)