The Bank of Japan (BOJ) kept interest rates on hold today as the central bank said the economy was slowing due to a domestic housing slump.
The central bank also downgraded its economic view - the first such major downgrade in three years - saying growth is slowing. BOJ Governor Toshihiko Fukui said downside economic risks are heightening.
But Mr Fukui also said the bank judges that the Japanese economy will likely remain on a moderate expansion track despite recent sluggishness, and that it has not budged in its stance of raising rates gradually in line with economic improvements.
Board member Atsushi Mizuno, who had been calling for higher rates since July, dropped his demand and voted with the rest of the board to keep rates steady, cementing a view in markets that the BOJ will not raise rates any time soon.