The Bank of Japan (BOJ) left policy unchanged on Tuesday at the conclusion of its two-day policy meeting, as widely expected.
The central bank maintained the negative 0.1 percent interest rate imposed on banks for some excess reserves, left the 10-year Japanese government bond (JGB) yield target at around zero, and kept annual rises in JGB holdings at 80 trillion yen ($676.9 billion).
The BOJ also upgraded its economic assessment, revising up its views on exports and output, while noting that the economy continued to recover moderately.
Indeed, a string of positive data has bolstered sentiment surrounding the world's third-largest economy.
The yen's 15 percent decline against the greenback over the past three months has boosted November export volumes, which hit a two-year high according to data released Monday, and brightened the outlook for manufacturers, as revealed by the central bank's December Tankan survey last week.