The Bank of Japan decided to keep interest rates at the low record of 0.1%. The bank said that the economy is showing signs of recovery as exports and production are improving, but spending remains weak. The BOJ added that the economy is expected to recover in the second half of this year.

The BOJ said that financial conditions are improving, but there are downside risks on economic growth. Capital spending still falling as companies continued to cut production and avoid buying machinery or improving production lines along with weak demand.