Since the January of 2009 this October for the first the Bank of Japan had downgraded its economic assessment for the nation with uncertain future of world economy as well as the impact of the still appreciated Yen.

On Wednesday in its monthly economic report the Central Bank has pointed out that Japan is recovering its economy moderately but the pace of recovery is becoming sluggish.

The bank is cautious regarding the overall economy of the nation as the pace of improvements in main economic apparatuses is not fast. The report pointed out that growth in production and exports have come down.

The country’s consumption is likely to go down for the time being as no longer the positive effect of the government’s economic stimulus measures can be seen. Even, with the climate getting cool the higher sales in the retail sector due to hot climate has tapered off.

BoJ also thinks that the year on year decline in consumer prices will get better as there is improvement in the balance of demand and supply. It added in its report that the prices of domestic corporate goods would remain weak temporarily since Yen is still getting appreciated and would continue to do so for some more time.

The economic downgrade followed the central bank’s policy board’s introduction of a broad package of measures for easing the economic pressure.

At the end of the meting the policy board of BOJ declared its widespread monetary easing. The board had reduced its policy target rate to a range of zero decimal zero to zero decimal one percent from the previous figure of zero decimal one percent and stated that target rates would continue to remain at zero until prices start overcoming the deflationary pressure.