The Bank of Japan kept monetary settings unchanged today after having eased policy just three weeks ago but cut its economic assessment, signalling its readiness to offer further monetary stimulus if risks to the economy's recovery heighten.

"Japan's economy continues to pick up but at a more moderate pace, mainly due to the effects of a slowdown in overseas economies," the central bank said in a statement issued after its policy review.

As widely expected, the BOJ maintained its key interest rate at a range of zero to 0.1 per cent by a unanimous vote.

At the previous rate review on October 27th, the BOJ cut its economic forecasts and eased policy by topping up its asset buying scheme, under which it buys government bonds and corporate debt, by 5 trillion yen to 20 trillion.

Reuters