The Bank of Japan decided Wednesday to leave its ultra-easy monetary policy unchanged. The decision was made by a majority vote at a meeting of the BOJ's nine-member Policy Board.

Under the "zero interest rate policy" adopted Feb. 12, 1999, the BOJ steers the target rate for unsecured overnight call money as low as possible to prop up economic activity.

The decision reflects the absence of clear signs of a pickup in personal consumption as companies continue restructuring to reduce labor costs, BOJ watchers said.

Strong personal consumption is usually regarded as one of the most important prerequisites for an economic recovery.

In the past few meetings, board members discussed whether the zero rate policy should be scuttled due to favorable economic signs such as improving corporate earnings and business sentiment.

During Wednesday's meeting, which lasted six and a half hours, members evidently discussed the issue but concluded that the ultra-easy monetary policy should be maintained in the absence of a sustainable recovery in private demand.

The minutes of the latest board meeting will be released April 13.

Prices up on month

Domestic wholesale prices rose 0.1 percent in February from January for the first gain in six months but fell 0.1 percent from a year earlier for the 24th straight month of year-on-year decline, the Bank of Japan said Wednesday.

The year-on-year fall is the smallest since March 1998, when domestic wholesale prices fell 0.1 percent.

The domestic wholesale price index stood at 96.1 in February against a base of 100 for 1995, the BOJ said.

Prices fell 0.2 percent in the electronics segment and 0.1 percent in the processed food sector from the previous month.

However, prices rose 1.7 percent in the petroleum and coal product sector, 0.7 percent in the nonferrous metal sector and 2.5 percent in the farm and marine product segment.

Export wholesale prices in terms of contract currencies in February rose 0.1 percent from the previous month and 2.6 percent from a year earlier.

In yen terms, export prices rose 2.9 percent from January due to a weaker yen, but fell 3.7 percent from a year earlier.

Import wholesale prices in terms of contract currencies rose 0.8 percent from January and 12.8 percent from a year earlier.

In yen terms, import wholesale prices rose 4.3 percent from the previous month due to a weaker yen and 6.6 percent from a year earlier.