The Bank of Japan kept its monetary stimulus unchanged as widely expected on Tuesday.
Governor Haruhiko Kuroda and his board members decided by an 8-1 majority vote to hold its target of raising the amount of outstanding JGB holdings at an annual pace of about JPY 80 trillion.
The bank will purchase government bonds so that the yield of 10-year JGBs will remain at around zero percent.
The board also decided to maintain the -0.1 percent interest rate on current accounts that financial institutions maintain at the bank.
With regard to the outlook, Japan's economy is likely to continue growing at a pace above its potential, mainly through fiscal 2018.
The year-on-year rate of change in the CPI is likely to continue on an uptrend and increase toward 2 percent.