Japan central bank cuts interest rate to 0.1 pct

The Bank of Japan said Friday that the policy board vote 7-1 to lower the uncollateralized overnight call rate target from 0.3 percent.

Expectations for a rate cut jumped following the U.S. Federal Reserve's move earlier this week to reduce its benchmark rate to a range of zero to 0.25 percent--the lowest level on record.

Bank of Japanalso introduced new steps to pump more money into the banking system to thaw a growing credit crunch.

Market observers now await the comments by Bank of Japan Gov. Masaaki Shirakawa later in the afternoon.