The Bank of Japan said Thursday it will purchase up to ¥3 trillion worth of commercial paper from financial institutions, and investigate ways to implement outright purchases of corporate bonds to facilitate corporate financing.

With little room left for a further rate cut, the BOJ said it will maintain its key interest rate at 0.1 percent.

Amid the global economic downturn, the BOJ also lowered its economic growth forecast for the current and following fiscal years and revised its inflation outlook downward.