The economy can recover from the March earthquake without additional asset purchases by the central bank because the slump isn't too severe, former Bank of Japan Deputy Gov. Toshiro Muto said.

"Given that the economy likely won't slip into a recession, I don't think there is a case to expect additional monetary stimulus measures," Muto said in an interview in Tokyo Thursday.

He also forecast that the yen may weaken to about 85 per dollar by the end of March, a slide that would aid Japanese exporters.