The Bank of Japan maintained its monetary stimulus, as widely expected, on Wednesday.
The policy board of the BoJ decided to purchase government bonds so that the yield of 10-year JGBs will remain at around zero percent.
The board retained the -0.1 percent interest rate on current accounts that financial institutions maintain at the bank.
The BoJ will conduct purchases of Japanese government bonds in a flexible manner so that the outstanding amount will increase at an annual pace of about JPY 80 trillion.
For the fiscal 2018, real growth projection was trimmed to 1.4 percent from 1.5 percent and inflation forecast to 0.9 percent from 1.1 percent.
The bank downgraded its inflation forecast for fiscal 2019 to 1.9 percent from 2 percent and that for fiscal 2020 to 2 percent from 2.1 percent.
Meanwhile, real GDP growth outlook for both fiscal 2019 and 2020 was retained at 0.8 percent.