TOKYO, Dec 19 (Reuters) - The Bank of Japan cut its key policy rate to 0.10 percent on Friday and took other steps to ease corporate credit strains, as sharp yen rises and crumbling global demand hit an economy already in recession. The decision, which follows Tuesday's dramatic rate cut by the Federal Reserve, was made by a vote of 7-1. Board member Tadao Noda voted against the rate decision, which takes effect immediately. [ID:nTKU003260] BOJ Governor Masaaki Shirakawa will hold an embargoed news conference later in the day, with his comments expected to come some time after 4:15 p.m. (0715 GMT). Japan, like the United States, is already in recession as companies such as carmakers Toyota (7203.T: Quote, Profile, Research, Stock Buzz) and Honda (7267.T: Quote, Profile, Research, Stock Buzz) slash output as customers close their wallets worldwide. The Fed's rate cut, which brought down U.S. rates to 0-0.25 percent, and the yen's rise to a 13-year high against the dollar have heightened calls from within the government and markets for the BOJ to further ease credit to help the economy. The BOJ cut its key policy rate to 0.3 percent from 0.5 percent in October and unveiled a series of measures to ease credit strains as the fallout from the global financial turmoil spread. (Reporting by Leika Kihara; Editing by Hugh Lawson)

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