The Bank of Japan (BOJ) kept interest rates unchanged today as widely expected by markets.
The decision to keep the overnight call rate target at 0.50 per cent was made unanimously by the nine-member policy board.
Financial markets did not react much to the result because few players expected any policy change after the BOJ raised rates last month.
The central bank raised its key policy rate to 0.50 from 0.25 per cent last month by an 8-1 vote, judging that the economy would stay on track for steady growth with prices seen in an uptrend.
The economy has held up well since the rate rise, but financial markets have remained volatile, with share prices briefly tumbling and the yen surging in the past few weeks as investors trimmed risk exposure due to uncertainty over the US economic outlook.
In a monthly report released after the rate decision, the BOJ left its assessment of the economy unchanged, saying it is expanding moderately.
On consumption, which is seen as the weakest link in the current economic recovery, the central bank also stuck to the previous month's assessment, saying it has been firm.
Market traders will now focus on BOJ Governor Toshihiko Fukui's news conference to gauge his view on recent financial market developments and if they could affect monetary policy if they persist.