The Bank of Japan refrained from increasing monetary stimulus, as Gov. Haruhiko Kuroda bets on stronger growth fueling inflation that is one-tenth the BOJ's target.

The central bank will continue to boost the monetary base at an annual pace of ¥80 trillion, it said in a statement.

Japan is flashing mixed signals on its recovery from last year's recession, with an increase in spending by companies and households and an inventory buildup that threatens to damp the economy after its first back-to-back quarterly expansion since 2013. Kuroda said last week there was no need for further easing now because a virtuous economic cycle was working, even as cheaper oil weighed on inflation.