TOKYO (Reuters) - The Bank of Japan kept monetary settings steady on Wednesday but cut its economic assessment for the second straight month, signaling its readiness to offer additional monetary stimulus if the economy's recovery prospects are threatened.
As widely expected, the BOJ kept its key interest rate at a range of zero to 0.1 percent by a unanimous vote.
Governor Masaaki Shirakawa will later hold an embargoed news conference with his comments expected to come out sometime after 4:15 p.m. (2:15 a.m. EST).
The central bank loosened monetary policy in October by topping up its asset buying scheme, under which it purchases government and corporate debt, to ease the pain from sharp rises in the yen and the global slowdown on the export-reliant economy.
It kept policy on hold last month but warned of the widening fallout from Europe's debt crisis and revised down its economic assessment to say that while Japan's economy continued to pick up its growth was moderating.
(Reporting by Leika Kihara and Rie Ishiguro; Editing by Chris Gallagher)
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