Tokyo  - The Bank of Japan decided Tuesday to maintain its key short-term interest rate at 0.1 per cent as the nation suffers the worst recession in its postwar era.

The policy board of Japan's central bank voted unanimously during its two-day meeting to forego another rate hike as was widely expected.

The bank lowered the rate from 0.3 per cent to 0.1 per cent in December.

The Bank of Japan, however, introduced new measures to boost lending, expanding the range of collateral it accepts. (dpa)