Many market watchers have called for such a move. The BOJ abandoned zero interest rates last August. Miyazawa denied that he wanted to push the yen lower to induce inflation. Comments he made Wednesday were seen as endorsing a drop in the yen. A weaker yen also helps exports.
Many economists see stronger exports as key to Japan's attempts to rebound.
Weak industrial-production figures last week showed Japan's economic slump is deepening. Export numbers were particularly disappointing. Experts had been hoping Japan started a recovery late last year. But it is now evident Japan's economy is contracting in 2001. Despite encouraging economic numbers Thursday, hopes are not high for Japan's gross domestic product figures, due Monday.