The Bank of Japan (BoJ) released its interest rate decision on Tuesday. The central bank kept its interest rate unchanged at -0.1% as widely expected by analysts. The monetary base target remained unchanged at 275 trillion yen, while the central bank said that it will expand its monetary base at an annual pace of 80 trillion yen as expected by analysts.
7 of 9 board members voted to keep interest rate unchanged, while 8 of 9 members voted for raising the monetary base at an annual pace of 80 trillion yen.
The central bank noted that it would expand its stimulus measures if needed to reach 2% inflation target.
The BoJ said that Japan's economy continued to expand moderately, but exports and production were sluggish due the slowdown in emerging economies, adding that domestic private consumption was resilient.
The central bank expects consumer inflation to be about 0% "for the time being" due to low energy prices.