The Bank of Japan on Tuesday kept its monetary policy steady, saying the economy is recovering despite the jolt it suffered from the consumption tax hike in April, but the bank downgraded its assessment of industrial output.
The decision came as market participants believe the BOJ will face difficulty achieving its 2 percent inflation goal within the stated time frame of about two years following the start of aggressive easing in April 2013.
The BOJ will release its latest growth and inflation forecasts later this month.