"We won't hesitate in taking additional monetary easing steps if we feel that risks have heightened enough ..."
- Takehiro Sato, board member of the BoJ
The Bank of Japan claimed its readiness to ease monetary policy again, amid deepening concerns that Japan may slip into recession. The BoJ has already increased the size of its asset-purchase program by JPY10 trillion ($127 billion) to a total of JPY80 trillion, in order to boost slowing economic activity. As the economy is slowing, the country may not achieve the BOJ's 1 per cent inflation target in 2012.
"We won't hesitate in taking additional monetary easing steps if we feel that risks have heightened enough and that the economy may undershoot our forecasts even after this month's monetary easing," said board member of the BoJ Takehiro Sato on Wednesday.
"If these risks materialize, there's a chance Japan may slip into recession. Buying more risky assets is a possible option."
The Nikkei 225 Stock Average fell 0.89 per cent, or 79.71 points, to 8,870.16. The broader Topix Index erased 1.10 per cent, or 8.17, to 737.42.
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