The Bank of Japan cut its economic growth forecast Tuesday, raised its projection for inflation and kept interest rates on hold.
BOJ Gov. Masaaki Shirakawa and his six colleagues left the overnight lending rate at 0.5 percent in a unanimous vote, the central bank said. The rate, doubled in February 2007, is the lowest among major economies.
The BOJ said the economy will expand 1.2 percent in the year ending March 31, slower than the 1.5 percent forecast April 30. Consumer prices excluding fresh food will rise 1.8 percent, more than the 1.1 percent projected three months ago.