TOKYO (AFX-ASIA) - The Bank of Japan downgraded its economic assessment, saying in its August report that adjustments in economic activity are intensifying further in line with a deterioration of production activity and the slowdown in the global economy. This is the third consecutive month that the central bank has downgraded its assessment of the economy. "Adjustments in economic activity are intensifying further, reflecting a substantial decline in exports and production," the BoJ said in its report. In its July report, the central bank had said that "adjustments in economic activity are intensifying as production is declining substantially, reflecting a fall in exports." Based on the new analysis, the Bank of Japan yesterday decided to ease monetary policy, boosting the target for outstanding current account balances to 6 trln yen from 5 trln and increasing purchases of long-term government bonds to 600 bln yen a month from 400 bln.