Investing.com - The Bank of Japan kept its monetary base target intact at its latest board meeting on Tuesday in a unanimous vote to keep buying government bonds at an annual pace of ¥50 trillion.
The board said that consumption remains resilient, but one member suggested changing the inflation expectations of 2% sustained by the 2015 fiscal year, saying it should be a longer-term goal.
"The Bank of Japan will conduct money market operations so that the monetary base will increase at an annual pace of about Y60 to Y70 trillion," the BoJ said, adding that its financial asset purchases will also proceed as decided in April 2013.
The BoJ largely repeated the view presented in recent months but acknowledged that the pullback in consumption is leading to lower factory operations.
"Japan's economy has continued to recover moderately as a trend, although some weakness, particularly on the production side, has been observed due mainly to the effects of the subsequent decline in demand following the front-loaded increase prior to the consumption tax hike," it said.