Japan’s central bank has opted to keep its lavish monetary stimulus intact while downgrading its outlook for inflation.
The Bank of Japan’s policy meeting ended on Thursday with no change to its injections of trillions of yen into the economy each year through government bond purchases.
The bank said in a statement it forecast inflation at 1.1 per cent in 2017, below its two per cent target.
But it raised its forecast for growth for the fiscal year to 1.8 per cent from 1.6 per cent.
Bank governor Haruhiko Kuroda has sought to spur inflation and encourage businesses and consumers to spend more sooner through massive asset purchases and a negative interest rate policy.
The statement said the economy was expanding at a moderate pace.