The Bank of Japan (BOJ) on Friday following the conclusion of a two-day policy meeting said it would implement new monetary easing measures amid projections the central bank will not clear its 2 percent inflation goal due to an ongoing decline in oil prices.

While delaying the timing of its 2 percent inflation goal to the first half of fiscal year 2017, the central bank also cuts its inflation target for fiscal year 2016, stating it now expects CPI to increase 0.8 percent.

The BOJ also said it plans to introduce a negative interest rate from next month, as falling oil prices have hampered the bank's reflationary efforts.

The bank said it plans to achieve its inflation target "at the earliest possible time," amid turbulent oil prices, the protected slump of which has impacted prices here.

The bank said it will apply a negative interest rate of minus 0.1 percent to current accounts held by financial institutions.

Its policy board also decided the bank will further cut the interest rate below minus as deemed necessary.

In terms of the bank's monetary base, the policy board decided to continue to increase the base at an annual pace of around 80 trillion yen (674.48 billion U.S. dollars).

While the European Central Bank (ECB) has already plunged into negative interest rates, the BOJ initially maintained it was reluctant to follow suit.

The bank's decision follows a raft of economic data released by the government here this morning that missed market expectations.

A slump in factory output and a decline in household spending, as well as consumer prices in Dec. edging up only 0.1 percent, while CPI for 2015 remaining largely flat, painted a glum outlook for Japan's economy.