Japan's central bank on Friday, June 15 held off fresh easing measures, despite mounting pressure to act amid growing fears that eurozone turmoil will damage a recovery for the world's third-biggest economy, according to AFP.
The Bank of Japan (BoJ) said it would leave its key interest rate at between zero and 0.1 percent but would also leave a 70 trillion yen ($885 billion) asset purchase program unchanged.
The decision, which came after a two-day policy meeting Friday, was likely to disappoint some Japanese lawmakers who have called on the bank to do more to kickstart the sputtering economy.
In a statement, the BoJ echoed previous comments on the state of Japan's economy, acknowledging the damaging deflation that has plagued the nation for years.
"The bank recognizes that Japan's economy faces the critical challenge of overcoming deflation and returning to a sustainable growth path with price stability," it said. "In global financial markets, some nervousness continues to be seen, mainly due to concerns about the European debt problem. Particular attention should therefore be given to developments in these markets for the time being."
In April, the BoJ in April rolled out the latest in a series of easing measures to halt falling prices and prop up the economy, which is struggling to recover from last year's quake-tsunami disaster and floods in Thailand.
The bank has also boosted a loan program amid reconstruction efforts seen as crucial to reviving the economy.
The central bank has been forced to resort to the unconventional measure as its ability to free up money has been limited since interest rates were cut to their record lows at the end of 2008 during the global financial crisis.
