A few Bank of Japan Policy Board members said the central bank should not dismiss any options in combating risks to the economy from the European sovereign debt crisis, a record of last month's meeting shows.
"A few members said Japan's economy could be adversely affected through various channels if, for example, a substantial risk materialized stemming from the European debt problem," the BOJ said in the minutes of the July 11-12 meeting released Tuesday. "These members continued that the bank should therefore stand ready to take appropriate actions without ruling out any options in advance."
The reconstruction-driven recovery from last year's disasters faded in the second quarter as consumer spending growth almost stalled, a report showed Monday. With deflation entrenched and the yen hovering near last year's high against the dollar, this slowdown could lead to intensified political pressure on the BOJ to further ease monetary policy.