The Bank of Japan (BOJ) kept interest rates unchanged at the first policy meeting chaired by new Governor Kazuo Ueda
The results were in line with market expectations that negative interest rates would remain at -0.10% and the 10-year Japanese government bond yield target of around 0%.
The central bank also made no changes to its guidance allowing the 10-year bond yield to move within a range of +/-0.50% as decided in December.
Following that, it continued to push the yen lower against the US dollar to around 134.88, down about 0.7%, at the time of writing.
Although the central bank remained with the current policy, but the inflation rate in the country continued to show an increase.
Most recently, the consumer price index (CPI) in Tokyo rose 3.5% in April, beating expectations for no change at the previous 3.2%.
Inflation in Tokyo is a leading indicator of nationwide trends. Japan's nationwide core CPI is now at 3.1% in March.
Earlier, press reports earlier this week reported that the BOJ will launch a monetary policy review by understanding the reasons behind Japan's economic instability and designing more effective measures.
Investors' focus is now on Governor Ueda's follow-up statement following the central bank's latest decision.
