TOKYO Oct 7 The Bank of Japan kept monetary
policy unchanged on Friday, holding off on tapping its depleted
policy arsenal for now although fears of a global recession and
Europe's debt crisis are clouding the outlook for the fragile
The central bank said Japan's economy would resume a
moderate economy but issued a slightly stronger warning about
overseas growth than in its statement after last month's policy
"Overseas economic growth is expected to slow for the time
being but will remain firm as a trend, led by emerging
economies," the BOJ said in a statement issued after the rate
As widely expected, the central bank maintained its key
interest rate at a range of zero to 0.1 percent by a unanimous
vote and refrained from loosening policy further via an
expansion of its asset buying scheme.
The BOJ also decided to extend by six months a 1 trillion
yen ($13 billion) loan scheme targeting banks operating in the
area hit by Japan's devastating March 11 earthquake and tsunami.
The scheme was due to expire at the end of this month.
Governor Masaaki Shirakawa will hold an embargoed news
conference, with his comments expected to come out sometime
after 4:15 p.m. (0715 GMT).
The central bank eased policy in August by boosting asset
purchases, on the same day Tokyo intervened in the currency
market to stem the yen's sharp rise. It has stood pat on policy