The Japanese Yen has fallen to its lowest level in several months following this Sunday's general elections in the country amid hopes that the BOJ will continue to take steps to boost the economy.

It is widely believed that the Bank of Japan under the new government will continue to aggressively take steps aimed at boosting the economy in the world's third largest economy. Polls shows that the Japan's main opposition party, the Liberal Democratic Party and its junior coalition partner might be able to secure a majority in the parliament to form a new government.

The central bank is looking to consider the policies of the new government before making decisions. Main opposition party leader Shinzo Abe appears to be favoring more fiscal and monetary stimulus and has even asked the central bank to keep the interest rates at zero or even at sub zero levels.

BoJ is also offering unlimited loans to banks in the country boost domestic demand and encourage lending. Experts say that the measures would help the economy but the central bank is required to further steps to boost the economic growth. The central bank had earlier said that it will expand its asset purchase programme by 11 trillion yen or about $ 138 billion.

The demand for credit in the Japanese economy has been affected due to deflation and a high exchange rate. The situation has prevented the country from boosting its domestic consumption in recent years. Falling prices have forced consumer to postpone purchases expecting to get cheaper prices while a high exchange rates have made Japanese goods more expensive for foreign buyers.

Japan's long-term interest rates have fallen to their lowest levels since 2003 and the national currency fell to its lowest level in eight months.