The Bank of Japan (BoJ) released its interest rate decision on Friday. The central bank lowered its interest rate to -0.1% from 0.1%, added that it could cut its interest rate further if needed. Analysts did not expect this decision.
Only 5 of 9 board members voted for the interest rate cut.
The BoJ tries to boost inflation toward its 2% target. The central bank expects inflation to reach 2% target in the first half of the fiscal year 2017.
The BoJ lowered its inflation forecasts. Inflation is expected to be 0.8% in the fiscal year 2016, down from the previous estimate of 1.4%.
The central bank upgraded its growth forecast for the fiscal year 2016 to 1.5% from 1.4%.