The Bank of Japan kept its interest rate unchanged at 0.1%. The BoJ said it will continue to expand the monetary base at a pace of ¥60 trillion to ¥70 trillion per year. This decision was expected by market participants.

The Bank of Japan Governor Haruhiko Kuroda said on Friday the BoJ will maintain its stimulus measures at least another year to reach 2 percent inflation target. Japan is "only half way" towards achieving it inflation target, he added.

Mr. Kuroda pointed out that he saw no reason for the yen to strengthen against the euro. If the euro depreciated by 10% or 20%, the BoJ could act, he said.

He also said that Japan’s economy was recovering moderately and Japanese exports have been weaker than analysts’ forecast.