The Bank of Japan decided unanimously to keep the key overnight rate steady near its zero range of 0.0-0.1% as widely expected in the market. The bank also decided to increase the size of its loan program by 2 trillion yen to increase the power of the loan facility to 5.5 trillion yen.

The bank said that Japan will gradually emerge from the current flat growth and will return to the path of moderate recovery. The bank also noted the weak global conditions saying that global economies still have not emerged from a deceleration phase on the whole but some improvement has recently been observed in the U.S. economy and the sluggish European economy has stopped deteriorating.

The BoJ kept the asset purchases program after the surprise decision in February to boost asset buying by 10 trillion yens to 65 trillion yens. The board rejected calls from board member Ryuzo Miyao to increase the asset purchases and loan scheme by 5 trillion yen.