FXStreet (Mumbai) - When the Bank of Japan decided to introduce negative rates as a measure of easing it was thought that the central bank has run out of easing tools and that it is finding it difficult to expand its asset purchase programe further. The central bank had last week decided to charge a 0.1 per cent interest on the excess reserves that the financial institutions park with it. It had however kept its existing asset-buying programe or QQE unchanged. However, Governor Kuroda’s speech today indicated that there still exists room to increase stimulus. "I am convinced that there is no limit to measures for monetary easing," he said. Kuroda also mentioned that the central bank is ready to cut interest rates deeper into negative territory. The governor’s speech today signaled signalling the BOJ’s readiness to act in order to achieve the set inflation target at the earliest. In the wake of oil price slump and other internal constraints like poor wage growth inflation in Japan has almost come to a halt. Kuroda stressed "If we judge that existing measures in the toolkit are not enough to achieve (our) goal, what we have to do is to devise new tools.” Governor Kuroda clarified that negative rates will not in any way hinder BOJ's efforts to consume government bonds. In fact the governor is also prepared to cut rates further into thee negative territory. He stated "If judged necessary, it is possible to further cut the interest rate from the current level of minus 0.1 per cent”. By introducing negative rates the BOJ aimed at pushing retail banks to lend more and boost economic growth. Analysts feel the measures of the central bank are inadequate given the current level of extremely low inflation and the persistent weak growth rate. Some analysts have thus forecast further interest-rate cuts.The BOJ it seems will opt to lower rates to negative 1 per cent over the next one year, from the current minus 0.1 per cent. For more information, read our latest forex news.