Monday, 19 March, 2001, 18:37 GMT
Japan cuts rates to zero

The Bank of Japan has brought back its zero per cent interest rate policy, in an effort to boost the country's ailing economy.

And it has guaranteed to keep the ailing banking sector afloat by flooding the economy with money if a major bank was threatened with bankruptcy.

Should there be a risk of financial market instability..the Bank will provide ample liquidity irrespective of the guidelines

Financial analysts are doubtful, though, whether the new policy will help the economy. With rates already close to zero, the move is more of symbolic than economic value.