The Bank of Japan has decided to leave its super-low interest rates unchanged, a move which was expected because of concern over the global economy.
The central bank, in a brief statement, said its policy board had agreed to leave its main rate at 0.5%, where it has been for one year.
Japan's benchmark interest rate is by far the lowest among major economies, a legacy of efforts to escape recession and to fight deflation.
Asia's largest economy has been slowly recovering from a long slump, with the government on Thursday releasing surprisingly strong growth figures. Japan's economy grew at a 3.7% annual rate in the fourth quarter of 2007.
Analysts doubt the central bank will raise rates again any time soon given fears of recession in the US. Japan's economy also faces a gloomy outlook given its reliance on the US as a market for its goods.
