According to BoJ board member Takehiro Sato, more stimulus is a real possibility if the economy's recovery is threatened, naming a few risks such as slower-than-expected growth in China.
"A high degree of uncertainty remains concerning the global economy, and I see risks to the economic outlook as somewhat tilted to the downside," Sato said.
"The BOJ does not exclude the implementation of additional measures and will not hesitate to fine-tune its policies flexibly when unexpected tail risks materialise," Sato added in a speech to business leaders in Fukushima, northeastern Japan.
Sato also said the 2% inflation should be seen as a flexible target, subject to change in the 2-year projections, a timeframe which had been repeatedly mentioned by BOJ governor Haruhiko Kuroda in past meetings.
"If the inflation rate is projected to stabilise within a certain range, with the median being 2 per cent price growth, the main objective of the bank's policy will have been fulfilled," Sato said.
Mr Sato, an economist who joined the BOJ board last year, was nonetheless more optimistic about japan’s economy from a year earlier, saying a recovery was "coming into view", presenting a "window of opportunity" to overcome deflation.