Japan 'to cut interest rate'

THE Bank of Japan is expected to cut the official discount rate to 3.25 per cent from 3.75 per cent early this week in an attempt to boost the economy.

A senior government source said the central bank would hold a special policy board meeting tomorrow to make the formal decision on the rate cut. While a bank source would not deny the reports, another government official suggested the reduction could be as big as 0.75 per cent.