The Bank of Japan on Friday put off additional monetary easing while providing optimistic predictions in its Outlook for Economic Activity and Prices report by boosting inflation forecasts.

The outlook, released every six months, predicts that the BOJ and government's goal of achieving 2 percent inflation will be within reach by fiscal 2015, with a predicted 1.9 percent rise in the consumer price index.

Some recent indicators "suggest a rise in medium to long-term inflation expectations," the report says, adding that the trend will continue and gradually help raise prices.