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TOKYO, April 27 The Bank of Japan kept monetary
policy steady on Thursday and offered a more upbeat view of the
economy than last month, signalling its confidence that a
pick-up in overseas demand will help sustain an export-driven
But the central bank slightly cut its inflation forecast for
this fiscal year in a quarterly review of its projections,
suggesting that it will maintain its massive monetary stimulus
for the time being to achieve its ambitious 2 percent target.
"Japan's economy has been turning towards a moderate
expansion," the BOJ said. That compared with the previous
month's assessment that Japan's economy continues to recover
moderately as a trend.
In a widely expected move, the BOJ maintained the 0.1
percent interest it charges on a portion of excess reserves that
financial institutions park at the central bank.
At the two-day policy meeting that ended on Thursday, it
also kept its yield target for 10-year Japanese government bonds
around zero percent.
BOJ Governor Haruhiko Kuroda will hold a news conference at
3:30 p.m. (0630 GMT) to explain the policy decision.
After more than three years of huge asset purchases failed
to accelerate inflation, the BOJ revamped its policy framework
last September to one aimed at capping long-term interest rates.
(Reporting by Leika Kihara, Stanley White, Tetsushi Kajimoto
and Minami Funakoshi; Editing by Chang-Ran Kim and Chris