The Bank of Japan (BOJ) set its monetary policy unchanged at a policy meeting held in today's Asian session, as widely expected by the market.
The central bank did not change its target for short-term interest rates at a low of -0.10% and 10-year government bond yields around 0%.
In addition, it also lowered its economic outlook for the current year ending March to a contraction of 5.6% from the previous forecast for a decline of 5.5%.
Meanwhile, the BOJ is also reviewing its economic outlook for the next fiscal year, indicating that it has provided sufficient stimulus so far to address the impact of the Covid-19 pandemic.
In its latest quarterly forecast, the central bank boosted its next fiscal year growth forecast based on optimism for strong exports and the government's large spending package will support the economy.
However, it also warns of increased risk to prospects as new emergencies launched this month will affect consumption.
According to the BOJ, projections can change due to high uncertainty and this depends on developments on pandemics and how they affect the local and foreign economies.
The Japanese yen traded around a 2-week high against the US dollar following the BOJ decision.
