The Bank of Japan kept monetary policy steady on Wednesday and cut its price forecasts.
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The BOJ maintained its massive stimulus program for the time being as inflation remains subdued, according to Reuters.
The central bank also issued a stronger warning than three months ago on the costs of prolonged easing, saying that the risk of the financial system destabilizing is not big for now but warrants attention.
The central bank maintained its short-term interest rate target at minus 0.1 percent and a pledge to guide 10-year government bond yields around zero percent.
The central bank’s forward guidance remained a pledge to keep interest rates extremely low for an extended period.
