The Bank of Japan (BOJ) kept its massive monetary policy stimulus intact on Tuesday, as widely expected, but analysts are still calling for further action in the coming months on the back of a tumble in the consumer inflation rate.
The BOJ voted 8-1 to maintain its pledge of increasing base money at an annual pace of 80 trillion yen ($659 billion) via purchases of government bonds and risky assets.
The focus now shifts to BOJ governor Haruhiko Kuroda, who will hold a media briefing later in the day to explain the policy decision.
"The statement was virtually unchanged, which is somewhat surprising given that recent industrial production and export figures were strong," Marcel Thieliant of Cpital Economics wrote in a note following the decision.
"The only adjustment was that the Board now expects inflation to remain around zero for the time being abstracting from the impact of last year's sales tax hike. Last month, it predicted it would slow further," he added.
The central bank is under pressure to meet its goal of reflating the economy, targeting the consumer inflation at 2 percent by early 2016.