The Bank of Japan on Thursday stepped up measures to help embattled companies suffering in the credit crisis, with plans to buy up to Y1,000bn ($10.6bn) in corporate bonds and extend its emergency purchases of other assets from financial institutions.

In a sign of its alarm over the economic outlook, the BoJ said it would buy corporate bonds rated A and higher from next month. It will extend its programmes to buy commercial paper and provide unlimited collateral-backed loans to financial institutions.