As expected, the Bank of Japan kept interest unchanged at 0.10%. Rather, policymakers said they will bolster current liquidity-boosting measures by expanding the range of assets acceptable as collateral for loans. As for the bank’s assessment of current economic conditions, traders were given a familiar mantra with the BOJ saying that the economy has deteriorated “significantly” and will continue to do so “for the time being”. Although the BOJ still expects the economy will begin to recover late into the 2009 fiscal year (Winter-Spring, 2010), the level of uncertainty about the forecast remains “high”. Further, members of the monetary policy body expressed concern about “downside risk of inflationary expectations”, alluding to the possibility of deflation. This could prove disastrous for the world’s second-largest economy as consumers and businesses perpetually put off spending and investment to wait for the best possible bargain, sinking the economy still deeper into recession.