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Bank of Japan unveils new steps to ease credit crunch

  Japan’s central bank on Thursday announced new steps to tackle a credit crunch in Asia’s biggest economy by mopping up risky assets, as it left its key interest rate unchanged at 0.1%.

The Bank of Japan (BoJ) said it would spend up to ¥3 trillion ($33.7 billion) to buy commercial paper, a type of short-term corporate debt, in an effort to keep credit flowing during the financial crisis.

The BoJ has little room to reduce its rock-bottom interest rates further so it is seeking alternative tools to repair credit markets and rescue the Japanese economy from a deepening recession. (The Economic Times)