Article: Tokyo Said Set to Cut Interest Rates;Central Bank's Move Seen Unlikely to Stir Japan's Flat Economy

In a further sign of worry in high places over the plunging Tokyo stock market, officials of the Bank of Japan let it be known today that they will probably be cutting interest rates shortly.

Newspapers and wire services here reported that the central bank will probably cut its discount rate by one-half a percentage point, to 3.25 percent, as early as Monday. Bank of Japan officials could not be reached to confirm the reports, but cuts in the discount rate, which is what the central bank charges on its loans to commercial banks, are often preceded by leaks to the press.

Word of the pending cut came a day after Prime Minister Kiichi Miyazawa and his top economic advisers met to discuss ...

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