Japan's central bank is pledging more aggressive action to boost the economy, including a 2 percent inflation target and easing monetary conditions.
The Bank of Japan - or BOJ says it would conduct "open-ended" asset purchases to help achieve the goal of breaking out a long spell of deflation.
Prime Minister Shinzo Abe has been lobbying the central bank to ease monetary policy further to help the recession-struck economy escape from years of falling prices.
The BOJ also released a joint statement with the government on fighting deflation, with the government vowing growth strategies to restore fiscal health.
The continual contraction has led analysts to say the economy has entered a mild recession amid sluggish demand both at home and abroad.
For more on Japan's inflation target, CRI's Abhijan Barua spoke earlier with Chris Clague, who's the Japan Analyst at The Economist Intelligence Unit.
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