At the conclusion of a monetary policy meeting on Wednesday, the Bank of Japan downgraded inflation and economic growth forecasts through fiscal 2020, putting its 2 percent inflation target well out of reach for the foreseeable future.
In the short term, the central bank also predicted that inflation for the current fiscal year would only rise by 0.9 percent, a downward revision of 0.2 points from its July forecast.
But with little room left for further easing after years of monetary stimulus, the board voted 7 to 2 to keep monetary policy unchanged.