Tokyo  - The Bank of Japan on Friday reduced its benchmark interest rate from 0.3 to 0.1 per cent as the world's second-largest economy finds itself in recession.

The reduction had been expected after the US Federal Reserve this week lowered its key interest rate to a record low.

But there were doubts within Japan's central bank that the latest reduction would have much effect after the bank lowered its overnight lending rate to 0.3 per cent in October, media reports said. (dpa)