The Bank of Japan maintained its ultra-loose monetary policy today and reiterated its view that the economy is recovering moderately.

This comes after signs of a pick-up in exports that is key to sustaining the momentum generated by premier Shinzo Abe's stimulus programme.

Markets are focusing on what Governor Haruhiko Kuroda will say in his post-meeting news conference about speculation of more easing by the European Central Bank and uncertainty about when the US. Federal Reserve will slow its asset purchases.

As widely expected, the Japanese central bank maintained the monetary framework it put in place in April, which aims to achieve 2% inflation in roughly two years by doubling base money through aggressive asset purchases.

"Japan's economy is recovering moderately," the Bank of Japan said in a statement announcing the decision, unchanged from the assessment it made last month.

"Exports have generally been picking up," reflecting a moderate recovery in overseas economies, it said.

The world's third-largest economy slowed in the three months from July to September as exports and household spending moderated, although analysts expect growth to accelerate in the current quarter as consumers try to beat the sales tax hike next April.

Soft exports have been a key concern for bank officials, who hope the global economy will pick up in time to make up for the expected downturn in household spending after the tax hike.

A modest rebound in export volume in October likely tempered concerns held by many BoJ officials about weakness in shipments.

But with momentum lacking in emerging Asian nations, significant buyers of Japan's exports, Kuroda will likely remind markets that the Bank of Japan is watching overseas headwinds and stands ready to ease again if its inflation goal comes under threat.