BoJ keeps rates on hold

The Bank of Japan (BoJ) today declined to follow up on its February interest rate rise due to a lack of inflationary pressure.

That keeps the overnight call rate target at 0.50 per cent for the second month in a row.

In its monthly report the BoJ left its assessment of the world's second-largest economy unchanged, saying it is expanding moderately and will continue to do so.

It said year-on-year changes in consumer prices are moving around 0 per cent and are likely to stay there for the near term, reflecting recent falls in crude oil prices.

But in the long run, consumer prices will stay in an upward trend as the nation's output gap moves towards positive territory, the BoJ said in the report, maintaining the view it expressed in February.