last week that its index of leading indicators gauge fell to a level suggesting the onset of a recession.
I can not deny the possibility that Japan has fallen into a recession phase, Maehara told reporters after the data was released.
He said he expected the BOJ to pursue powerful policy easing, although in a speech BOJ head Shirakawa stressed that flooding markets with cash alone wouldn't inflation the economy when interest rates are near zero. The government should boost the economy's growth potential with deregulation and structural reform, he said.
Exports and output are likely to remain weak, and domestic demand won't increase enough to make up for the weakness in exports, he said.
The BOJ set a 1 percent inflation target and eased policy in February. It followed up with further stimulus based on asset buying in April, September and October on mounting evidence the economy was on the cusp of a recession.
The euro zone is expected to report on Thursday that the economy shrank by 0.2 percent in the third quarter, extending a 0.2 percent contraction in the second quarter.