The Bank of Japan has cut its two main money market rates, saying it was worried about growing weakness in the world's second-largest economy.
The central bank said its Policy Board had decided to lower its key overnight money-market call rate to 0.15% from 0.25%. It cut the more symbolic discount rate by a similar margin, to 0.25% from 0.35%.
The rate was reduced from 0.5% as recently as February 9, but evidence of a rapid economic slowdown has continued to accumulate since then.
The BOJ, which took the decision by a majority vote, said Japan's economy had slowed further due to the weakness of overseas economies. It said it was also worried about downward pressure on prices due to the weak demand.
Data released earlier showed industrial output and housing starts both fell sharply in January, fanning fears that Japan was on the verge of a renewed recession after a decade of stop-go growth.
